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 |
Need help understanding this because I thought it was "D. none of these" but it was marked wrong. Thank you
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Financial Accounting
Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin
7th Canadian Edition
0135433061, 9780135433065
