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What is the tax implication on the sale of this new machine

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Question - A machine will reach the end of its useful life in 5 years. The realizable salvage value is expected to be $50,000 with a book value of zero. The company's marginal tax rate is 34%. What is the tax implication on the sale of this new machine at year 5?

Tax shield of $17,000

Tax Liability of $17,000

Tax shiel of $33,000

Tax Liability of $33,000

Reference no: EM133187267

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