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What is the tax liability if the crane is sold now

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Reference no: EM133002952

Problem 1: PanAfrica Construction bought a small crane ten years ago for $140,000. The crane is being depreciated over a 15-year life to a salvage value of $20,000. PanAfrica pays taxes equal to 40 percent of ordinary income and capital gains. What is the tax liability (or saving) if the crane is sold now for $92,000?

Reference no: EM133002952

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