The Galley purchased some 3-year MACRS property 1 years ago at a cost of $27,400. The MACRS rates are 33.33 percent, 44.44 percent, 14.82 percent, and 7.41 percent. The firm no longer uses this property so is selling it today at a price of $17,300.

What is the amount of the aftertax profit on the sale? Assume the firm ignores bonus depreciation and has a tax rate of 21 percent?

Answer rating: 100% (QA)

Taxable Gain Sale Price Cost Basis 17300 27400 10100 Depreciation Ex... View the full answer