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7.3 q2 Equipment with a book value of $11,000 will be sold at the end of a project for a salvage value of $8,000.  The tax rate is 30%.  What is the tax effect resulting from the profit or loss from the sale of the equipment (where a negative number means tax is payable and a positive number means that there is a tax shield)? a. $-900 b. $900 c. $-3300 d. $3300

7.3 q2 Equipment with a book value of $11,000 will be sold at the end of a project for a salvage value of $8,000.  The tax rate is 30%.  What is the tax effect resulting from the profit or loss from the sale of the equipment (where a negative number means tax is payable and a positive number means that there is a tax shield)? a. $-900 b. $900 c. $-3300 d. $3300

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7.3 q2

Equipment with a book value of $11,000 will be sold at the end of a project for a salvage value of $8,000.  The tax rate is 30%.  What is the tax effect resulting from the profit or loss from the sale of the equipment (where a negative number means tax is payable and a positive number means that there is a tax shield)?

a.
$-900
b.
$900
c.
$-3300
d.
$3300
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