Question: Mitch Inc wants to replace a 9-year -old machine with a new machine that is more efficient. The old machine cost $70,000 when new and

Mitch Inc wants to replace a 9-year -old machine with a new machine that is more efficient. The old machine cost $70,000 when new and has a current book value of $15,000. Mitch can sell the machine to a foreign buyer for $14,000 Margo's tax rate is 35%. The effect of the sale of the old machine on the initial outlay for the new machine it, a). -$13,650 b). -$14,350 c). -$9,100 d). $1,000 Show your work & explain WHY

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