Question: When the used asset is eventually sold for less than its depreciated book value: When the used asset is eventually sold for less than its

When the used asset is eventually sold for less than its depreciated book value: When the used asset is eventually sold for less than its depreciated book value: The firm's tax liability is reduced by the amount of the difference times the ordinary income tax rate there is a capital gain tax then the difference is taxed as ordinary income there are no tax effects

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