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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.)
  

Tax loss on the sale
Tax benefit



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.)
  

Taxable gain
Tax obligation

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 10 months ago
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