Calculate tax paid on gain on disposal

Assignment Help Financial Management

Reference no: EM131549223

Genetic Insights Co. purchases an asset for $13,130. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $3,839. Calculate tax paid on gain on disposal. Round the answer to two decimals.

Reference no: EM131549223

Questions Cloud

How sensitive has the companys value been to changes : How sensitive has this company's value been to changes in macro-economic variables such as interest rates, currency movements, inflation, and the economy?

Perform a k-nearest neighbors prediction : Perform a k-nearest neighbors prediction with all the predictors - classification with all the predictors from column

Which of the given are tax-deductible for a corporation : Which of the following are tax-deductible for a corporation? Which of the following will likely result in a greater use of external funding?

Firm has five-year payback requirement : What is the project's payback period? If the firm has a 5-year payback requirement, should it accept the project? Explain.

Calculate tax paid on gain on disposal : Calculate tax paid on gain on disposal.

Discuss the ethical behavior for the success of a business : Ethical behavior is essential for the success of a business and often times ignored. It seems that no matter where we look today, the erosion of basic moral.

Summarize the concept of investing in stocks : Summarize the concept of investing in stocks. Include a definition of what kind of investment the purchase of a stock is,

Determine the valuation of various types of securities : Determine the valuation of various types of securities. Assess the risks in the various types of financial markets and develop strategies to manage the risks.

Calculate gain or loss on disposal : Calculate gain or loss on disposal. Gain should be entered as a positive number.

User Account

All Pages