A company is looking at replacement equipment the existing


A company is looking at replacement equipment. The existing equipment had an original cost of $985 and currently has a book value of $325. If the equipment could be sold for $500, what are the pre-tax gain (loss), the after-tax gain (loss), and the related cash flow? Assume a 36.5% tax rate and any losses will be used immediately to offset gains somewhere else within the corporation.

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Financial Management: A company is looking at replacement equipment the existing
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