Business Studies, asked by LoganDRavager2382, 1 year ago

Cost of machine 30000 old machine cost 8000 was sold for 4000 if atx rate 50% find amount of net investment

Answers

Answered by ajaybhumihar000
0

Answer:

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Answered by Pratham2508
0

Answer:

The amount of net investment is 26000.

Explanation:

Given:

Cost of machine = 30000

The old machine cost 8000 and was sold for 4000

Tax Rate = 50%

To Find:

The amount of net investment

Solution:

The old machine had a value of 8000

It was resold for 4000

The cash in hand instead of the machine is 4000

Tax rate = 50%

Tax rate:

  • Reselling items are tax-free for vendors with valid state resale certificates.
  • Tax exemptions are given for goods sold to charity or educational institutions.
  • There is a list of locally produced goods that are free from sales tax.
  • Thus, the tax will not be charged for the resold goods.

Investment cost for new machinery = 30000

Cash in hand from resale = 4000

Thus, the net investment would be found as,

Net investment = Investment cost for new machinery - Cash in hand from the resale

Net investment = 30000 - 4000

Net investment = 26,000

Conclusion:

The amount of net investment is 26000.

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