An asset was purchased three years ago for $105,000. It falls into the five-year category for MACRS depreciation. The firm is in a 25 percent tax bracket. Use Table 1212.

Table 12-12

a. Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $13,560. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.)

Tax loss on the sale ____

Tax benefit ______

Compute the gain and related tax on the sale if the asset is sold now for $53,060. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.)

Taxable gain_____

Taxable obligation____