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Problem:

An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $8,300,000 and will be sold for $1,870,000 at the end of the project.

Question: If the tax rate is 34 percent, what is the after-tax salvage value of the asset?

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172924

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