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Question - Reversing Rapids Co. purchases an asset for $181,024. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of four years for $10,843. Correct answer = 6131.38
Calculate tax credit on disposal. Round the answer to two decimals.
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