Sale of the old machine on the initial outlay, Accounting Basics

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Sale of the old machine on the initial outlay

Nargo Inc. Wants to replace a 7 year old machine with a new machine that is more efficient. The old machine cost $50,000 when new and has a current book value of $10,000. Margo can sell the machine to a foreign buyer for $12,000. Margo's tax rate is 30%. The effect of the sale of the old machine on the initial outlay for the new machine is ________:

a) [$12,600]

b) [$11,400]

c) [$8,400]

d) $0

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Accounting Basics: Sale of the old machine on the initial outlay

Reference No:- TGS089592

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Sale of the old machine on the initial outlay

Reference No:- TGS089592

Recent Questions Asked Accounting Basics

Q : The ciso has a meeting with the cio

Q : Develop the appropriate loss function by finding value

Q : What is standard direct material amount per urn

Q : Absolute common theme

Q : Sale of the old machine on the initial outlay

Q : While a lot of the information risk to individuals

Q : What effect would change have on the optimal solution

Q : Moral issues faced by international corporations

Q : The assignment requires examine

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