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Explain Contract Pricing for Machine Sale
Malea sold a machine for $140,000. The machine originally cost $90,000 and $10,000 of MACRS depreciation had been allowable. The buyer assumed a lien of $40,000, paid $20,000 cash down and agreed to pay $10,000 per year for eight years plus interest. Selling expenses are $10,000. The contract price is
A. $40,000.B. $80,000.C. $100,000.D. $130,000.
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