A financial analyst calculated that the after-tax salvage value for a machine was $10,200. The current book value of the asset is $12,000 and the firm's tax rate is 30 percent. How much could the machine be sold for today?
A. $7,151.63
B. $9,428.57
C. $6,953.07
D. $9,103.49
Answer: B
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On December 31, Strike Company has decided to sell one of its batting cages. The initial cost of the equipment was $215,000 with an accumulated depreciation of $185,000. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $20,000. What is the amount of the gain or loss on this transaction?
A) Gain of $20,000 B) Loss of $10,000 C) No gain or loss D) Cannot be determined
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Answer the following statement true (T) or false (F)
Xavier Co. sold goods with the terms 2/15, n/30. What do these payment terms mean?
What will be an ideal response?