question 24. A corporation is selling an existing asset for $2000. The asset, when purchased, cost $10,000, was being d

[answerhappygod]

question 24. A corporation is selling an existing asset
for $2000. The asset, when purchased, cost $10,000, was being
depreciated under MACRS using a 5-year recovery period and has been
depreciated for 3 full years. If the assumed tax rate is 25
percent on ordinary income and capital gains, the tax effect of
this transaction is:
The depreciation rates for the assets under 5 year MACRS are as
follows
20% for year 1, 32% for year2, 19% for year 3, 12% for year 4,
12 % for year 5, and 5% for year 6.
If tax effect is a cash inflow enter it as a positive number
If tax effect is a cash outflow enter it as a negative
number