Reversing Rapids Co. purchases an asset for $197,207. This asset qualifies as a five-year recovery asset under MACRS. Th
Posted: Wed Jul 06, 2022 6:28 pm
Reversing Rapids Co. purchases an asset for $197,207. Thisasset qualifies as a five-year recovery asset under MACRS. Thefive-year expense percentages for years 1, 2, 3, and 4 are 20.00%,32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a taxrate of 30%. The asset is sold at the end of four years for$13,845. Calculate tax credit on disposal. (The answer should beentered as positive value). Round the answer to two decimals.