What is the tax saving on the loss in book value after tax

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Reference no: EM132752325

Question: An asset has a first cost of $22,000, an annual operating cost of $1000, an expected salvage value of $3000, and a life of 8 years. If the asset is sold three years later for $12,000,

(a) what is the tax saving on the loss in book value after tax using a tax rate of 33%

(b) what is the tax saving on the loss in book value after tax using an interest rate of 12% per year

Reference no: EM132752325

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