What is the capital losses in year one

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Reference no: EM131958323

JameisCrabLegs Inc., a seafood distributor in the State of Florida, with a 34% combined income tax rate is considering an investment of $10,000 in equipment, having depreciable life of 3 years.

The company uses the MACRS depreciation with the following depreciation rates for 3-year class: 33.33% in Year 1, 44.45% in Year 2, 14.81% in Year 3, and 7.41% in Year 4.

If the equipment is sold for $4,000 in Year 1. What is the capital losses in Year 1?

Reference no: EM131958323

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