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