Answered: Compute the after-tax gains or losses…

Business

Accounting

Compute the after-tax gains or losses your company makes on this sale. Assume a tax rate of 21%.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

13)
year MACRS approach. However, after 3 years your company sold the machinery for $50,000.
Compute the after-tax gains or losses your company makes on this sale. Assume a tax rate of
21%.
Your company bought a piece of machinery for $80,000, and depreciated it using a 7-

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