Book value and taxes on sales of assets

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Book Value and Taxes on sales of assets: Troy industries purchased a new machine three years ago for $80,000. It is being depreciated under MACRS with a 5-year recovery period using the percentages given in table 4.2 on pg. 117 assume a 40% tax rate.

A. What is the book value of the machine?

B. 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.

Reference no: EM132036727

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