Question: Basra Sciences is planning to purchase a high-powered microscopy machine for US$55,000 and incur an additional US$7,500 in installation expenses. It is replacing similar microscopy

Basra Sciences is planning to purchase a high-powered microscopy machine for US$55,000 and incur an additional US$7,500 in installation expenses. It is replacing similar microscopy equipment that can be sold to net US$35,000, resulting in taxes from a gain on the sale of US$11,250. Because of this transaction, current assets will increase by US$6,000 and current liabilities will increase by US$4,000. Calculate the initial investment in the high-powered microscopy machine.

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