An asset was purchased three years ago for $140,000. It falls into the five-year category for MACRS depreciation. The firm is in a 25 percent tax bracket. Use Table 1212. a. Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $17,060. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.) b. Compute the gain and related tax on the sale if the asset is sold now for $60,060. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.)

Depreclation percentages (expressed In declmals) Table 12-12 Depreciation 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year MACRS MACRS MACRS MACRS MACRS MACRS 1 0.333 0.200 0.143 0.100 0.050 0.038 ......s. 0.445 0.245 2 0.320 0.180 0.095 0.072 3 0.148 0.192 0.175 0.144 0.086 0.067 0.074 0.115 4 0.125 0.115 0.077 0.062 5 0.115 0.089 0.092 0.069 0.057 6 0.058 0.074 0.062 0.053 0.089 7 0.045 0.089 0.066 0.059 8 0.059 0.045 0.045 0.066 0.045 0.065 0.059 10 0.059 0.045 0.065 11 0.033 0.059 0.045 12 0.059 0.045 13 0.045 0.059 14 0.059 0.045 15 0.045 0.059 16 0.030 0.045 17 0.045 18 0.045 19 0.045 20 0.045 0.017 21 1.000 1.000 1.000 1.000 1.000 1.000