purchased a new machine 3 year(s) ago for $78,000. It is being
depreciated under MACRS with a 5-year recovery period using the
schedule Assume 21% ordinary and capital gains tax
rates.
a. What is the book value of the machine?
b. Calculate the firm's tax liability if it sold the machine
for each of the following amounts: $93,600; $54,600; $22,620;
and $15,800.
in part B please show your work like the photo I
uploaded
- Book Value And Taxes On Sale Of Assets Troy Industries Purchased A New Machine 3 Year S Ago For 78 000 It Is Being 1 (134.08 KiB) Viewed 48 times
Data table 10 years 12% First Four Property Classes Percentage by recovery year* Recovery year 3 years 5 years 7 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 12% 12% 5 12% 9% 9% 5% 9% 8% 7 9% 7% 4% 6% 9 6% 698 11 49 Totals 100% 10090 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while Print Done
Book value and taxes on sale of assets Troy Industries purchased a new machine 3 year(s) ago for $78,000. It is schedule B. Assume 21% ordinary and capital gains tax rates. a. What is the book value of the machine? b. Calculate the firm's tax liability if it sold the machine for each of the following amounts: $93,600; $54,600, $22,620 a. The remaining book value is $ 22620 . (Round to the nearest dollar.) b. Calculate the firm's tax liability for each case: (Round to the nearest dollar.) Sale Tax on Tax on Total Capital Gain Depreciation Recovery Price Capital Gain Recovery Tax $ 93.600 $ $ $ $ Help me solve this View an example Ask my instructor