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Troy Industries purchased a new machine three years ago for $80,000. It is being depreciated under MACRS with a five-year recovery period. Assume a 21%
Troy Industries purchased a new machine three years ago for $80,000. It is being depreciated under MACRS with a five-year recovery period. Assume a 21% tax rate.
- Use Table 4.2 to calculate the book value of the machine.
- Calculate the firms tax liability if it sold the machine for each of the following amounts: $100,000; $56,000; $23,200; and $15,000.
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
12th Edition
1439044473, 978-1439044476
