Question

11)An asset was purchased three years ago for $185,000. It falls into the five-year category for MACRS depreciation. The firm is in a 30 percent tax bracket. Use Table 12–12.
 a.Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $21,560. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.)
     Tax loss on the sale$     Tax benefit$   
 b.Compute the gain and related tax on the sale if the asset is sold now for $69,060. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.)
     Taxable gain$     Tax obligation

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