Acme is considering the sale of a machine with a book value of P160,000 and 3 years remaining in its useful life. Straight-line depreciation of P50,000 annually is available. The machine has a current market value of P200,000. What is the cash flow from selling the machine if the tax rate is 30%? Group of answer choices P200,000 P192,000 P190,000 P50,000 P184,000 P188,000 P172,000 P160,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Acme is considering the sale of a machine with a book value of P160,000 and 3 years remaining in its useful life. Straight-line depreciation of P50,000 annually is available. The machine has a current market value of P200,000. What is the cash flow from selling the machine if the tax rate is 30%?
Group of answer choices
P200,000
P192,000
P190,000
P50,000
P184,000
P188,000
P172,000
P160,000
 
 
 
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