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An in-place machine with B = $160,000 was depreciated by using Modified Accelerated Cost Recovery System...

An in-place machine with B = $160,000 was depreciated by using Modified Accelerated Cost Recovery System (MACRS) over a 3-year period. The machine was sold for $60,000 at the end of year 2 when the company decided to import the item that required the use of the machine. In year 2, gross income (GI) = $1 million and operating expenses (OE) = $500,000. Determine the tax liability in year 2 if Te = 35%.

The tax liability in year 2 is determined to be $____?

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Answer #1

*De 3 니 35,552 ¥ Taje payable on sale ot Asset

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