13) Your company bought a piece of machinery for $80,000, and depreciated it using a 5-year MACRS approach. However, after 2 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%.

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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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13) Your company bought a piece of machinery for $80,000, and depreciated it using a 5-year
MACRS approach. However, after 2 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%.
Transcribed Image Text:13) Your company bought a piece of machinery for $80,000, and depreciated it using a 5-year MACRS approach. However, after 2 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%.
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