Grove Pretzel Is Replacing an Old Pretzel Oven with a New

question 65

Multiple Choice

Grove Pretzel is replacing an old pretzel oven with a new one.The oven is being sold for $25,000 and it has a net book value of $75,000.Assume that Grove Pretzel is in the 34% income tax bracket.How much will Grove Pretzel net from the sale?

• A)$61,000
• B)$55,000
• C)$75,000
• D)$42,000

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