Calculate the capital gain for each vehicle

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Reference no: EM131056820

Hamberg Manufacturing identified two vehicles from the vehicle pool that can be sold. The purchase prices were $2,500 and $3,000 for vehicle 1 and Vehicle 2, respectively. However, only one vehicle will be sold. Management wants to sell the vehicle with the lowest capital gains tax. Assume a 40% tax rate. a. Calculate the capital gain for each vehicle b. Which vehicle should be sold? Explain your answer

Reference no: EM131056820

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