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Three years ago, your firm purchased a Machine for Rs.52, 000. It is being depreciated straight line to a salvage value of Rs. 2,000 in
Three years ago, your firm purchased a Machine for Rs.52, 000. It is being depreciated straight line to a salvage value of Rs. 2,000 in two more years. If your firm sells the Machine today for Rs. 22,500, it will receive only Rs. 21,150 after taxes. a. What is the annual depreciation on the machine? (1) b. What is the current book value of the machine? (2) What is your firm's marginal tax rate?
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