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Question3.(Capital gains tax) The company HC is considering selling one of its old assembly machines. The machine, purchased for $30,000 5 years ego, had an
Question3.(Capital gains tax) The company HC is considering selling one of its old assembly machines. The machine, purchased for $30,000 5 years ego, had an expected life of 10 years and an expected salvage value of zero. Assume HC uses simplified straight-line depreciation, creating of $3,000 per year, and could sell this old machine for $35.000. Also assume a 34 percent marginal tax rate. a. What would be the taxes associated with this sale? b. If the old machine were sold for $15,000, what would be the taxes associated with this sale
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