The following table contains purchase and sale prices for the nondepreciable capital assets of a major corporation.
Question:
The following table contains purchase and sale prices for the nondepreciable capital assets of a major corporation. The firm paid taxes of 40% on capital gains.
a. Determine the amount of capital gain realized on each of the five assets.
b. Calculate the amount of tax paid on each of theassets.
Transcribed Image Text:
AssetPurchase price Salc price A 3,000 3,400 12,000 62,000 41,000 16,500 12,000 80,000 45,000 18,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (15 reviews)
a and b Asset Sale Price 1 Purchase P...View the full answer
Answered By
Ashok Kumar Malhotra
Chartered Accountant - Accounting and Management Accounting for 15 years.
QuickBooks Online - Certified ProAdvisor (Advance - QuickBooks Online for 3 years.
5.00+
3+ Reviews
10+ Question Solved
Related Book For
Principles of managerial finance
ISBN: 978-0132479547
12th edition
Authors: Lawrence J Gitman, Chad J Zutter
Question Posted:
Students also viewed these Finance questions
-
A software support division of a major corporation has eight projects that can be performed. Each project requires different amounts of development time and testing time. In the coming planning...
-
The following table contains Japanese yen to dollar exchange rate data that were published in issues of Risk magazine. Each period is three months. Spot rate is the actual spot exchange rate...
-
The following table contains price-demand and total cost data for the production of regular sleeping bags, where p is the wholesale price (in dollars) of a sleeping bag for an annual demand of x...
-
Net income Depreciation expense Accounts receivable increase (decrease) Inventory increase (decrease) Accounts payable increase (decrease) Accrued liabilities increase (decrease) O Changes in current...
-
Evaluate each of the three unfair labor practice charges concerning the company's refusal to supply requested bargaining information and decide if each charge represents a violation of the employer's...
-
a. Show that x 2 + y 2 10x + 4y 20 = 0 can be written in the form (x a) 2 + (y b) 2 = r 2 , where a, b and r are numbers to be found. b. Hence write down the centre and radius of the circle with...
-
Assume the expected inflation rate in China to be 4.5 percent. If the current real rate of interest is 6.5 percent, what is the nominal rate of interest?
-
Outback Outfitters sells recreational equipment. One of the companys products, a small camp stove, sells for $50 per unit. Variable expenses are $32 per stove, and fixed expenses associated with the...
-
26 The number of protons, neutrons, electrons in some particles are shown in the table below Particle Protons Neutrons electrons P 1 1 2 Q 2 2 2 R 3 4 2 T 4 5 4 Which one of the following particles...
-
There is a database that contains a website's traffic data over a period of 30 days. The first table contains users' information including the user type (user, crawler, admin). The second table...
-
Using the corporate tax rate schedule given in Table, perform the following: a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of corporate earnings...
-
What is finance? Explain how this field affects the life of everyone and of every organization.
-
Define a liability. What are the three characteristics of a liability?
-
in a command economy, the _ _ _ _ wither makes most exonomoc decisions itself or at least strongly influences how the decisions are made
-
Why is an LLC an attractive form of business organization for many new companies? A. Because, although they are more complicated to manage than corporations, they provide greater protection from risk...
-
67) A spring, k = 600 N/m, is compressed 0.08 m, shooting a 0.09 kg marble at some angle in the air. When the marble is 0.4 m above the starting height, how much kinetic energy will the marble have?
-
Most of the work involved in planning and conducting new-board-member orientation programs falls to the club's: 1. general manager 2. president of the Board 3. department managers 4. secretary of the...
-
The density of marble is about 2.71 g/cm. Determine the mass (in lbs) of a piece of marble countertop with dimensions 135 cm x 75 cm x 3.2 cm. 1 lb = 453.6 g. You can assume the shape is a...
-
A reporter asks you to explain why scientists are so confident that the Earth has undergone a general warming over the past century. Knowing that reporters hate long answers, construct an answer that...
-
In Exercises 1-2, rewrite each verbal statement as an equation. Then decide whether the statement is true or false. Justify your answer. 1. The logarithm of the difference of two numbers is equal to...
-
A binary tree is balanced if both its subtrees are balanced and the height of its two subtrees differ by at most 1. Implement a linear-time method balanced () that returns true if the tree is...
-
What relationship exists between the size of the standard deviation and the degree of asset risk?
-
What does the coefficient of variation reveal about an investments risk that the standard deviation does not?
-
What is an efficient portfolio? How can the return and standard deviation of a portfolio be determined?
-
A 40.0-g object connected to a spring with a force constant of 50.0 N/m oscillates with an amplitude of 6.00 cm on a frictionless, horizontal surface. (a) Find the total energy of the system. mJ (b)...
-
A proton is going 976 m/s when it is exposed to a 38 T magnetic field (see below) and begins moving in a circle. Determine the direction of the magnetic force, the radius of the motion, and the...
-
Example: A surface charge of 5.0 C/m is located in the x-z plane in the region -2.0 m x 2.0 m and -3.0 m y 3.0 m. Find analytically the electric field at the point (0, 4.0, 0) m. x 3 Ps=5/C/m =2...
Study smarter with the SolutionInn App