The gain or loss on the disposal of a machine is a relevant factor when considering replacing the machine if tax is a consideration.

Name: The gain or loss on the disposal of a machine is a relevant factor when considering replacing the machine if tax is a consideration.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If tax is a consideration, the gain or loss on the disposal of a machine will affect the tax liability of the company. Therefore, it is a relevant factor in the decision-making process of whether to replace the machine.

The Gain or Loss on the Disposal of a Machine