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Xico Inc. bought a piece of equipment for $25,000 (assume the asset was purchased on the first day of the fiscal year). The equipment has
Xico Inc. bought a piece of equipment for $25,000 (assume the asset was purchased on the first day of the fiscal year). The equipment has a salvage value of $2,000 and it is amortized, using the declining balance using a rate of 10%. If the firm sells the asset at the end of year 2 and realizes a loss of $2,500, what is the selling price?
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