Consider a five$-$year MACRS asset purchased at $$75,000.($Note that a five$-$year MACRS property class is depreciated over six years due to the half$-$year convention. The applicable salvage values would be $$43,000$ in year $3,$$$31,000$ in year $5,$ and $$7,000$ in year $6.)$

Click the icon to view the MACRS depreciation schedules.

$($a$)$ Compute the gain or loss amount when the asset is disposed of in Year $3.$

The taxable gain or loss amount when the asset is disposed of in Year $3$ is $$14,200.$

$($Round to the nearest dollar.$)$

$($b$)$ Compute the gain or loss amount when the asset is disposed of in Year $5.$

The taxable gain or loss amount when the asset is disposed of in Year $5$ is $ $($Round to the nearest dollar.$)$