Compute tax loss on the sale and related tax benefit

Assignment Help Financial Management

Reference no: EM131917169

An asset was purchased three years ago for $195,000. It falls into the five-year category for MACRS depreciation. The firm is in a 30 percent tax bracket. Use Table 12–12.

a. Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $22,560. (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 $71,060. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.)

Taxable Gain?

Tax Obligation?

Reference no: EM131917169

Questions Cloud

Calculate the Z score indicator of bank stability : Calculate the Z score indicator of bank stability in a new sheet called "Stability". From the sheet "Profitability", copy the ROA data for each bank

Perform a swot analysis on the case study for dell : Perform a SWOT analysis on the case study for DELL. Name at one relevant legislation and explain how it affects business operation.

Review the current plans that your selected company has : Contrast the modifications you would make in evaluating the projects to increase internal capacity in North America.

Explain the impact of the guerrillas actions : Post an explanation of the Nevada Four guerrillas competing obligations using Waldo's map of ethical obligations of a public servant. Explain the impact

Compute tax loss on the sale and related tax benefit : Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $22,560.

To which environmental force is flashflix reacting : Responding to very strict "green" legislation, the chemical firm Atticus Environmental is touting the safety of its consumer-based vegetable garden insecticide.

Find the present value of the expected payoffs : What is the present value of the expected premiums from the CDS? find the present value of the expected payoffs.

What was the concentration of a : If the initial concentration of A was 4.75 M, what was the concentration of A (in M) after 180.0 min?

Evaluate forecasting models and techniques to meet demands : Evaluate forecasting models and techniques to meet the demands of a global business and will explain the differences between estimates of error.

User Account

All Pages