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What is the tax saving on the loss in book value

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Question - An asset has a first cost of $22,000, an annual operating cost of $1000, an expected salvage value of $3000, and a life of 8 years. If the asset is sold three years later for $12,000.

(a) What is the tax saving on the loss in book value after tax using a tax rate of 33%?

(b) What is the tax saving on the loss in book value after tax using an interest rate of 12% per year?

(c) What is the tax saving on the loss in book value after tax using straight-line depreciation?

Reference no: EM132738915

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