What amount of gain has patriot received from transaction

Assignment Help Finance Basics

Reference no: EM1344964

Patriot Industries recently sold its fin fabrication machine for $150,000. The machine originally cost $500,000 and has a current book value of $100,000. Patriot's marginal tax rate is 35 percent for ordinary income and 35 percent for capital gains income.

a. What amount of gain has Patriot received from this transaction?

b. Is this a capital or ordinary gain?

c. How much tax must Patriot pay on this transaction?

Reference no: EM1344964

Questions Cloud

Find the minimum required rate of return : Explain what is his or her minimum required rate of return - A foreign investor placing money in dollar denominated assets desires a 4% real rate of return.

Information about global finance : What are some implications of currency depreciation, devaluation, and appreciation for the US Dollar compared to a foreign currency? How does a strong U.S. dollar affect the balance of trade for USA? Why?

Program to print total balances forward and total withdrawal : At the end of report, print total balances forward, total deposits, total interest earned, total withdrawals and total final account balances.

Find out the mass of the worker : While rearranging a dorm room, a student does 292J of work in moving a desk 3.90m. What was the magnitude of applied horizontal force.

What amount of gain has patriot received from transaction : What amount of gain has Patriot received from this transaction and this a capital or ordinary gain?

Private and leveraged buyouts : The benefits and difficulties of going public is an area worthy of consideration. While it seems that the ultimate aim of every small company is to grow large enough to one day be public,

Illustrate what is the interest rate : Illustrate what is the interest rate. Jack and Jill both obey the two-period fisher model of consumption.

Global business management-how to write business plan : What are the critical components of a business plan? Consider any changes which would be required if the plan were to be used in the foreign country.

A placekicker is about to kick a field goal : The ball is 21.9 m from the goal post. The ball is kicked with an initial velocity of 19.8 m/s at an angle θ above ground. Between what two angles, θ1 and θ2, will the ball clear the 2.74m high crossbar.

User Account

All Pages