Question
An equipment purchased at a cost $80,000 by a local company is being depreciated using MACRS method as a 5-year property. At the end of
An equipment purchased at a cost $80,000 by a local company is being depreciated using MACRS method as a 5-year property. At the end of four years, the management decided to sell the equipment for a modest price of $20,000. The company is in the 34% tax bracket. Compute the tax consequence on the sale of this equipment.
| A. $6,800 | |
| B. $926.40 | |
| C. $533.12 | |
| D. None of these |
On my first try i put D none of these and it was incorrect.
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The New Microfinance Handbook A Financial Market System Perspective
Authors: Joanna Ledgerwood, Julie Earne, Candace Nelson
1st Edition
0821389270, 978-0821389270
