An asset was purchased three years ago for $155,000 It falls into the five year category for MACRS depreciation The firm is in a 30 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 $18,560 (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 $ b Compute the gain and related tax on the sale if the asset is sold now for $63,060 (Input all amounts as positive values Do not round intermediate calculations and round your answers to whole dollars ) Taxable gain $ Tax obligation $ Depreciation Year 3 Year MACRS MACRS MACRS MACRS MACRS MACRS 5 Year 7 Year 10 Year 15 Year 20 Year 200 320 192 115 115 058 143 245 175 125 089 089 089 045 100 180 144 115 092 074 066 066 065 065 033 050 095 086 077 069 062 059 059 059 059 059 059 059 059 059 030 038 072 067 062 057 053 045 045 045 045 045 045 045 045 045 045 045 045 045 045 017 1 000 445 148 074 3 4 5 6 7 8 9 1 000 1 000 1 000 1 000 1 000

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An asset was purchased three years ago for $155,000. It falls into the five-year category for MACRS depreciation. The firm is in a 30 percent

An asset was purchased three years ago for $155,000. It falls into the five-year category for MACRS depreciation. The firm is in a 30 percent tax bracket. Use Table 1212.

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a.	Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $18,560. (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	$

b.	Compute the gain and related tax on the sale if the asset is sold now for $63,060. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.)


Taxable gain	$
Tax obligation	$

Depreciation Year 3-Year MACRS MACRS MACRS MACRS MACRS MACRS 5-Year 7-Year 10-Year 15-Year 20-Year 200 .320 192 .115 115 .058 .143 245 .175 125 .089 .089 089 .045 100 180 144 115 092 .074 066 .066 065 .065 .033 .050 .095 086 077 069 062 059 .059 .059 059 059 059 059 059 .059 .030 .038 .072 .067 062 .057 053 045 045 045 045 045 045 045 045 045 045 045 045 045 045 017 1.000 -445 -148 .074 3 4 5 6 7 8 9 1.000 1.000 1.000 1.000 1.000