Question
In: Finance
An asset was purchased three years ago for $120,000. It falls into the five-year category for...
An asset was purchased three years ago for $120,000. It falls into the five-year category for MACRS depreciation. The firm is in a 35 percent tax bracket. Use Table 12–12.
a. Compute the tax loss on the sale and the
related tax benefit if the asset is sold now for $12,560.
(Input all amounts as positive values. Do not round
intermediate calculations and round your answers to whole
dollars.)
|
b. Compute the gain and related tax on the sale if
the asset is sold now for $51,060. (Input all amounts as
positive values. Do not round intermediate calculations and round
your answers to whole dollars.)
|
Solutions
Expert Solution
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
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