Consider a five-year MACRS asset purchased at $78,000. (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 $38,000 in year 3, $26,000 in year 5, and $2,000 in year 6.)

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 $ ____ (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.)

c.)Compute the gain or loss amount when the asset is disposed of in Year 6.

The taxable gain or loss amount when the asset is disposed of in Year 6 is $ ____ (Round to the nearest dollar.)