What are the tax effects of the transaction

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Problem: Watanabe Corporation is selling one of its assets for $§1,700. The asset originally cost $10,000. It has been depreciated under MACRS using a five-year recovery period, and it has been depreciated for four full years. Assume that the tax rate is 40 percent on both ordinary income and capital gains. What are the tax effects of this transaction?

Reference no: EM133667302

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