An asset was purchased for $300,000 originally. Each year for the past 8 year, depreciation has...
An asset was purchased for $300,000 originally. Each year for the past 8 year, depreciation has been recorded which results in the asset having a current book value of $180,000. Now your firm is selling the asset for $145,000. What will be the total tax burden (or tax credit) caused by this sale? If it is a tax burden, enter the number as a positive number. If it is a tax credit, enter the number as a negative number. Assume a tax rate of 40%.
Homework Answers
We see that as sale price is less than book value, there will be
tax credit=(145000-180000)*40%
=-14000.00
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An asset was purchased for $300,000 originally. Each year for
the past 8 year, depreciation has...
An asset was purchased for $200,000 originally. Each year for the past 8 year, depreciation has...
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QUESTION 6 An asset was purchased for $200,000 originally. Each year for the past 8 year,...
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