We buy a machine costing $20,000 and the book value of the machine at the end of five years is $3,420

Finance Jan 13, 2021

We buy a machine costing $20,000 and the book value of the machine at the end of five years is $3,420. If the sale price is $2,310, how much tax would we have to pay or save? Assume tax rate is 25%. Pls mention amount and pay or save below Tax Amount Pay or Save Ans:

Expert Solution

The answers to the given question is provided in the order below

Tax Amount =(2310-3420)*25%=-277.50

Saved amount=277.50

277.50 SAVE

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