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Victor bought a car for $44,500 as a business investment opportunity. He is allowed to depreciate over 10 years and take it as business tax
Victor bought a car for $44,500 as a business investment opportunity. He is allowed to depreciate over 10 years and take it as business tax deduction. At the end of the 10th year he sells this car for $22,000. Compute the cumulative cash benefit after sale on this transaction. Assume that Victor can earn 5% after tax returns and is in 33% tax bracket. Tax rate on gain for Victor is 15%.
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