Genetic Insights Co. purchases an asset for $13,132. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $3,340. Calculate tax paid on gain on disposal.

Answer rating: 100% (QA)

To calculate the tax paid on the gain on disposal we need to determine the gain on disposal first Th... View the full answer