Question
Suppose that for my business I purchased a new machine with a value of $900,000, which depreciates at 10% per year. After 5 years of
Suppose that for my business I purchased a new machine with a value of $900,000, which depreciates at 10% per year. After 5 years of using this machine, I am selling it for $530,000. Considering that the applicable income tax rate (ISR) is 26% and that the accumulated inflation was 13%, what is the net income after taxes that I will obtain from the sale of the machine?
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The net income after taxes from the sale of the machine would be 119480 This is calculated ...Get Instant Access to Expert-Tailored Solutions
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
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