Question: please explain how to solve. im confused. Book value and taxes on sale of assets Troy Industries purchased a new machine 2 year(s) ago for

Book value and taxes on sale of assets Troy Industries purchased a new machine 2 year(s) ago for $76,000 It is being depreciated under MACRS with a 5-year recovery period using the schedule E Assume 40 % ordinary and capital gains tax rates a. What is the book value of the machine? b. Calculate the firm's tax liability if it sold the machine for each of the following amounts $91,200, $53,200; $36,480 and $25,500 a. The remaining book value is $ 36,480 (Round to the nearest dollar) b. Calculate the firm's tax liability for each case: (Round to the nearest dollar) Sale Capital on Depreciation Total n Price Gain Capital Gain Recovery Recovery Tax 91,200 S S Enter any number in the edit fields and then click Check Answer. ? parts 3 remaining Clear All Check Answer
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
