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n-place machine with B= $165,000 was depreciated by using Modified Accelerated Cost Recovery System (MACRS) over a 3-yea od. The machine was sold for $60,000 at the end of year 2 when the company decided to import the item that required the use o machine. In year 2, gross income (GI) = $1 million and operating expenses (OE) = $500,000. Determine the tax liability in year 2 if = 35%.

n-place machine with B= $165,000 was depreciated by using Modified Accelerated Cost Recovery System (MACRS) over a 3-yea od. The machine was sold for $60,000 at the end of year 2 when the company decided to import the item that required the use o machine. In year 2, gross income (GI) = $1 million and operating expenses (OE) = $500,000. Determine the tax liability in year 2 if = 35%.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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An in-place machine with B= $165,000 was depreciated by using Modified Accelerated Cost Recovery System (MACRS) over a 3-year period. The machine was sold for $60,000 at the end of year 2 when the company decided to import the item that required the use of the machine. In year 2, gross income (GI) = $1 million and operating expenses (OE) = $500,000. Determine the tax liability in year 2 if Te = 35%. The tax liability in year 2 is determined to be $ 162167.95
Transcribed Image Text:An in-place machine with B= $165,000 was depreciated by using Modified Accelerated Cost Recovery System (MACRS) over a 3-year period. The machine was sold for $60,000 at the end of year 2 when the company decided to import the item that required the use of the machine. In year 2, gross income (GI) = $1 million and operating expenses (OE) = $500,000. Determine the tax liability in year 2 if Te = 35%. The tax liability in year 2 is determined to be $ 162167.95
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