Compute the taxes owed after selling this equipment

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Reference no: EM131211266

A piece of equipment is bought for $70,000 and is depreciate, with a salvage value of $2,000. At the end of 5 years the equipment was sold for $35,000. If the company is in the 36% tax bracket, compute the taxes owed after selling this equipment in year 5 if:

a) Using Straight Line Depreciation and a life of 7 years:

b) Using MACRS 7 year property depreciation:

Reference no: EM131211266

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