A corporation sold a piece of equipment during the current tax year for $87,000. The accounting records show that its cost basis, B, is $100,000 and the accumulated depreciation is $130,100. Assume that the effective income tax rate as a decimal is 0.35 (35%). Based on this information, compute
i. the gain (loss) on disposal,
ii. the tax liability (or credit) resulting from this sale,
iii. the tax liability (or credit) if the accumulated depreciation was $72,600 instead of
$130,100?

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