Equipment that was purchased for $900,000 has a current book value of $450,000. Assume a capital gains tax rate of 28%. Compute
1 answer:
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Answer: The equalization rate for the municipality is 45%.
Explanation:
Given that,
Total market value of a municipality = $25,000,000
Total assessed value of a municipality = $11,250,000
Therefore,
Equalization rate for the municipality =
=
= 0.45
= 45%
Hence, the equalization rate for the municipality is 45%.