Ask Question
12 October, 19:28

Diego Inc. wants to replace a 7-year-old machine with a new machine that is more efficient. The old machine cost $50,000 when new and has a current book value of $12,000. Diego can sell the machine to a foreign buyer for $14,000. Diego's tax rate is 25%. What is the cash inflow that should be recorded for the initial year regarding this transaction?

+3
Answers (1)
  1. 12 October, 19:58
    0
    Answer:$10,500

    Explanation:

    The only cash inflow is the $14,000 from the sale of machinery less the 25% tax rate.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Diego Inc. wants to replace a 7-year-old machine with a new machine that is more efficient. The old machine cost $50,000 when new and has a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers