A Machine with a Book Value of $8,000 Can Be

question 88

Multiple Choice

A machine with a book value of $8,000 can be sold for $9,500. The corporation that owns the machine has taxable income of $50,000 and a tax rate of 40%. What would be the tax on the sale of the machine?

• A) $600
• B) $3,200
• C) $3,800
• D) $20,000

---

Definitions:

Paperback Edition

A version of a book that has a cover made of paper or cardboard, typically less expensive and lighter than hardcover versions.

Home Heating

The process of increasing the temperature of an indoor space for comfort, typically achieved through systems like furnaces, boilers, or heat pumps.

Monopolists

Entities or individuals that have exclusive control over the supply of a particular good or service, potentially leading to distorted markets and higher prices.

Internalize

The process of absorbing or incorporating the costs or benefits of a transaction or activity, which were previously external to a market decision-maker, into their own decision-making process.