What is the solution to the merys tax problem

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Merry 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. Merry can sell the machine to a foreign buyer for $14,000 Merry's tax rate is 35%. The effect of the sale of the old machine on the initial outlay for the new machine it, What is the solution to the problem?

Reference no: EM13201934

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