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An asset was purchased three years ago for $215,000. It falls into the five-year category for MACRS depreciation. The firm is in a 40 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 $24,560. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.)
Tax loss on the sale $
Tax benefit $
b. Compute the gain and related tax on the sale if the asset is sold now for $75,060. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.)
Taxable gain $
Tax obligation $
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