A Machine with a Book Value of $60,000 Could Be

question 94

Multiple Choice

A machine with a book value of $60,000 could be sold for $80,000. The corporation that owns the machine has taxable income of $670,000 and a 40 percent tax rate. What would be the tax on the sale of the machine?

• A)$0
• B)$20,000
• C)$12,000
• D)$8,000

---

Definitions:

Mesoderm

The middle layer of an embryo in early development, which will develop into the muscles, bones, and much of the circulatory, reproductive, and excretory systems.

Posterior Pituitary

A part of the brain involved in the release of hormones like oxytocin and vasopressin, which regulate important bodily functions.

Organogenesis

The phase of embryonic development concerned with the formation and differentiation of organs.

Endothelial Tubes

Structures formed by endothelial cells lining the interior surface of blood vessels and lymphatics, crucial for vascular function.