The effect of this sale on ni and cash would be

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At the end of 2012, Liam Corporation buys a new machine for $30K, the cost of which is depreciated over 5 years. The first year’s depreciation is taken in 2013. Liam sells the machine at the end of 2015 (after three years) for $13,000. Liam’s tax rate is 30%. The effect of this sale on NI and cash would be:

Reference no: EM13945133

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