A machine was purchased two years ago for 50000 TL. At that time, it was assumed...
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A machine was purchased two years ago for 50000 TL. At that time, it was assumed that the machine had a 5 years useful time with a salvage value of 5000 TL. The company used straight line depreciation method. Today the machine has a market value of 40000 TL. The tax rate is 35%. If the company wants to provide a replacement analysis what amount should be used for the initial investment value of this current machine in the analysis? A machine was purchased two years ago for 50000 TL. At that time, it was assumed that the machine had a 5 years useful time with a salvage value of 5000 TL. The company used straight line depreciation method. Today the machine has a market value of 40000 TL. The tax rate is 35%. If the company wants to provide a replacement analysis what amount should be used for the initial investment value of this current machine in the analysis?
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Answer rating: 100% (QA)
To determine the initial investment value for the replacement analysis we need to consider the net b... View the full answer
Related Book For
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
Posted Date:
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