How much will mca pay in capital gains tax on the sale

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Problem 1: MCA Healthcare sells some old equipment for $120,000. The equipment was purchased several years ago for $200,000 and has a book value of $50,000. The corporate tax rate is 21 percent. How much will MCA pay (receive) in capital gains tax on the sale?

1)  $25,200

2) $10,500

3) $0

4) $42,000

5) $14,700

6) $16,800

7) $31,500

8) $52,500

9) $67,200

10) $120,000

Reference no: EM132968054

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