Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. an asset was purchased three years ago for $155,00

An asset was purchased three years ago for $155,000. It falls into the five-year category...

70.2K

Verified Solution

Question

Finance

An asset was purchased three years ago for $155,000. It falls into the five-year category for MACRS depreciation. The firm is in a 25 percent tax bracket. Use Table 1212.

a. Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $18,560. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.)

Tax loss on sale?

Tax benefit?

b. Compute the gain and related tax on the sale if the asset is sold now for $63,060. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.)

Taxable gain?

Tax obligation?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

At 3748°C, K = 0.093 for the following reaction. N2(g) + O2(g) equilibrium reaction arrow 2...

Chemistry
Q

Estimate the percentage of specular component of total solar radiation onto flat surfaces. Consider the following...

Mechanical Engineering
Q

true or false- 1. Goods purchased, shipped FOB shipping point, and in transit should be included in...

Accounting
Q

Discuss the similarities and differences between animal and bacterial virus multiplication.(Words/concepts to include in your...

Biology
Q

In DNA replication the leading strand of DNA forming strand called the lagging strand while...

Biology
Q

A and B are two loops made from same wire The radii of A and...

Physics
Q

11 10 9 8 7 6 5 4 3 2 T f x 2 1...

Calculus
Q

Find the center radius form of the equation of the circle described and graph it...

Algebra
Q

Starlight Co. makes and sells only one product. The unit contribution margin is $10 and...

Accounting
Q

The current year financial statements for Blue Water Company and Prime Fish Company are presented...

Accounting
Q

1. The currency in which an international subsidiary conducts most of its transactions is its...

Accounting
Q

8. (8 points) This machinery was acquired by trading in used machinery. Facts concerning the...

Accounting