A machine was purchased two years ago for 60000 TL. At that time, it was assumed that the machine had a 6 years useful time with a salvage value of 6000 TL The company used straight line depreciation method. Today the machine has a market value of 50000 TL. The tax rate is 35%. If the company wants to provide a replacement analysis what amount should be used for the initial investment value of this current machine in the analysis?

A machine was purchased two years ago for 60000 TL. At that time, it was assumed that the machine had a 6 years useful time with a salvage value of 6000 TL The company used straight line depreciation method. Today the machine has a market value of 50000 TL. The tax rate is 35%. If the company wants to provide a replacement analysis what amount should be used for the initial investment value of this current machine in the analysis?

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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