Compute the tax loss on the sale

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Question: An asset was purchased three years ago for $120,000. It falls into the five-year category for MACRS depreciation. The firm is in a 35 percent tax bracket. Compute the following:

a. Tax loss on the sale and the related tax benefit if the asset is sold now for $12,560.

b. Gain and related tax on the sale if the asset is sold now for $51,060.

Reference no: EM131788444

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