Question: Hi, please answer the following question and show your work. Thank you and hope you have a good weekend. Question 23 7 pts 7 points.

Hi, please answer the following question and show your work. Thank you and hope you have a good weekend.

Hi, please answer the following question and show
Question 23 7 pts 7 points. CLEARLY LABEL YOUR ANSWERS Gabby purchased 5 yr. property to use in her business on 9/1/19 at a cost of $ 42,000. This was the only property placed in service in 2019. On 3/1/21 Gabby sold this equipment for $ 44,000. Answer each part below as follows: Part A (3 points): How much depreciation (use MACRS 200DB method) will Gabby claim in the following years? 2019 $ 2020 $ Part B (2 points): What is Gabby's recognized gain on the sale of this asset in 2021? 2021 recognized gain = $ Part C (2 points): If Gabby has a 37% ordinary income tax marginal rate and a 20% net capital gain tax marginal rate, How much additional tax will Gabby pay on the gain in part B? 2021 additional tax = $

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!