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Ronnie's Custom Cars Purchased Some Non-Current Assets Two Years Ago

Question 41

Multiple Choice

Ronnie's Custom Cars purchased some non-current assets two years ago for €39,000.The assets are depreciated using 20% reducing balances.Ronnie is considering selling these assets now so he
Can buy some newer non-current assets which utilize the latest in technology.Ronnie has been
Offered €19,000 for his old assets.What is the net cash flow from the salvage value if the tax rate is
34%?


A) €16,358.88
B) €17,909.09
C) €18,720.00
D) €21,026.40
E) €19,000.00

Correct Answer:

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