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An asset with an adjusted book value from the application of tax depreciation of 81,000 has...

An asset with an adjusted book value from the application of tax depreciation of 81,000 has been sold for 65,000. The firm has a tax rate of 21%. What are the net proceeds from the sale of this asset?

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Answer #1
Sale value of assets 81000
Less: Book value of assets 65000
Loss on sale of asset 16000
Tax shield on dep @ 21% 3360
After tax proceeds on sales 84360
(81000+3360)
Answer is $ 84360
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