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Mono-Mono Company has a profit of RM60,000 before tax. In the last two years Mono-Mono Company bought the machine for RM80,000 (excluding transportation expenses of
Mono-Mono Company has a profit of RM60,000 before tax. In the last two years Mono-Mono Company bought the machine for RM80,000 (excluding transportation expenses of RM800) to meet customers demand. Currently the company wants to sell the machine at the price of RM82,000 and the machine still has two remaining life. The depreciation value is RM20,200 every year until the end of its useful life. The salvage value is zero. Compute total tax liability for Mono-Mono Company if the marginal tax is 30 percent and capital gain tax is 25 percent
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