Question
FGH Corporation is considering purchasing equipment today that has a depreciable cost of P1 Million. The equipment will be depreciated as follows: Year1-20%, Y2-32%, Y3-19%,
FGH Corporation is considering purchasing equipment today that has a depreciable cost of P1 Million. The equipment will be depreciated as follows: Year1-20%, Y2-32%, Y3-19%, Y4-12%,Y5-11% and Y6-6%. Assume that the company sells the equipment after 3 years for P400,000 and the tax rate is 30%. What would be the tax consequence resulting from the sale of equipment?
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International financial management
Authors: Jeff Madura
12th edition
1133947832, 978-1305195011, 978-1133947837
