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please help with parts a through d (Capital gains tax) The J. Harris Corporation is considering selling one of its old assembly machines. The machine,
please help with parts a through d
(Capital gains tax) The J. Harris Corporation is considering selling one of its old assembly machines. The machine, purchased for $30,000 5 years ago, had an expected life of 10 years and an expected salvage value of zero. Assume Harris uses simplified straight-line depreciation (depreciation of $3000 per year) and could sell this old machine for 35,000 . Also assume Harris has a 32 percent marginal tax rate.
a. What would be the taxes associated with this sale?
b. If the old machine were sold for $25000, what would be the taxes associated with this sale?
c. If the old machine were sold for $15000, what would be the taxes associated with this sale?
d. If the old machine were sold for $12000, what would be the taxes associated with this sale?
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