Compute the tax on the gain from the equipment sale

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Reference no: EM13297309

Gracie's Mart purchased new equipmen for $32 million for a capital project. Current book value = $18 million. Gracie's Mart just sold that equipment for $22 million. The company's tax rate is 33%. Compute the tax on the gain from the equipment sale and the cash flow after tax net salvage value.

Reference no: EM13297309

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