Potomac corporation wants to sell a warehouse that it has used in its business for 10 years. potomac is asking $450,000 for the property. the warehouse is subject to a mortgage of $125,000. if potomac accepts wyden inc.’s offer to give potomac $325,000 in cash and assume full responsibility for the mortgage on the property, what amount does potomac realize on the sale

Precision dyes is analyzing two machines to determine which one it should purchase. the company requires a rate of return of 15 percent and uses straight-line depreciation to a zero book value over the life of its equipment. ignore bonus depreciation. machine a has a cost of $462,000, annual aftertax cash outflows of $46,200, and a four-year life. machine b costs $898,000, has annual aftertax cash outflows of $16,500, and has a seven-year life. whichever machine is purchased will be replaced at the end of its useful life. which machine should the company purchase and how much less is that machine's eac as compared to the other machine's