1. A very famous restaurant bought a meat processor 10 years ago for $50K. Its current book value stands at 10K. Given the fame of the restaurant, a regular and loyal patron has offered to buy the meat processor for 60K perhaps because of its potential collector's value. If the income tax on regular business income is 30% and the capital gains tax rate is 20%, how much total tax is owed by the restaurant this year for the sale of the meat processor? Please show formula and work, no excel ! :)

1. A very famous restaurant bought a meat processor 10 years ago for $50K. Its current book value stands at 10K. Given the fame of the restaurant, a regular and loyal patron has offered to buy the meat processor for 60K perhaps because of its potential collector's value. If the income tax on regular business income is 30% and the capital gains tax rate is 20%, how much total tax is owed by the restaurant this year for the sale of the meat processor? Please show formula and work, no excel ! :)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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