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

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