An old machine was purchased for $20,000, at a book value of $5,000, and sold fo - 3430

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  • Posted on: Fri 23 Mar, 2012
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Request Description

An old machine was purchased for $20,000, at a book value of $5,000, and sold for $9,000. The firm’s marginal tax rate is 25%. What is the amount of taxes due?

a. $9000

b. $5000

c. $2250

d. $1000

Solution Description

An old machine was purchased for $20,000, at a book