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MP Company purchased equipment for $140,000 on June 13, 2018. The equipment has a 10...

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Accounting

MP Company purchased equipment for $140,000 on June 13, 2018. The equipment has a 10 year useful life and a $10,000 residual value. MP sold the equipment to their subsidiary on April 7, 2022, for $78,000. Round depreciation to the nearest month. Use the SL method. MP has a 35% tax rate.

Determine the after-tax gain or loss on sale.

Please show all calculations for my own understanding. Thank you

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