An asset was purchased three years ago for $105,000. It falls into the five-year category for MACRS depreciation. The firm is in a 35 percent tax bracket. 

(a)	Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $13,560.(Round "Percentage depreciation" to 3 decimal places. Input all amounts as positive values. Omit the "$" sign in your response.)

Tax loss on the sale	$
Tax benefit	$

(b)	Compute the gain and related tax on the sale if the asset is sold now for $53,060. (Round "Percentage depreciation" to 3 decimal places. Input all amounts as positive values. Omit the "$" sign in your response.)

Taxable gain	$
Tax obligation	$

Answer rating: 100% (QA)

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