Suppose you sell a fixed asset for $52,403 when its book value is $32,092. If your...

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Answer 1

Answer #1

Tax rate		25%

Calculation of after-tax salvage value
WDV	Cost less accumulated depreciation		32092
Sale price			52403
Profit/(Loss)	Sale price less WDV		20311
Tax	Profit/(Loss)*tax rate		5078
Sale price after-tax	Sale price less tax		47325

Answer 2

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