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In December of 20x4, Memphis Plastics sold a forklift for $7,600. The machine was purchased in 20x1 for $35,000. Since then $25,900 in depreciation has
In December of 20x4, Memphis Plastics sold a forklift for $7,600. The machine was purchased in 20x1 for $35,000. Since then $25,900 in depreciation has been recorded on the forklift. |
1. | What was the forklifts book value at the time of sale? |
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2. | Compute the gain or loss on the sale. |
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3. | Determine the after-tax cash flow at the time the forklift was sold. The firms tax rate is 45 percent. |
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