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Your firm purchased a piece of equipment in 2010 for $100 million and after 10 years of use the book value equals $23 million. If
Your firm purchased a piece of equipment in 2010 for $100 million and after 10 years of use the book value equals $23 million. If the firm is expected to sell that equipment at the end of its useful life (at the end of year 10) for $8 million, will this transaction cause a tax liability or a tax credit? Explain why without the use of a mathematical equation
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