Bestari Sdn. Bhd. sold a pump during the current tax year for RM 85,300. The accounting records show that its cost basis, B, is RM 205,000 and the accumulated depreciation is RM 143,400. Assume that the effective income tax as a decimal is 0.50 (50%). Based on this information, what is: The gain (loss) on disposal. (3 Marks) (b) The tax liability (or credit) resulting from this sale. (5 Marks) (c) The tax liability (or credit) if the accumulated depreciation was RM 89,300 instead of RM 143,400 (5 Marks) Attachments (F/P,1%,N) (P/F,1%,N) Table A.1: Interest Rate Factors and Nominal/Effective Formula For single cash flows: F (1 + i)N Single payment compound amount F Single payment present worth For uniform series (annuities): F (1+1)N Uniform series compound amount (1+0)N-1 i(1+1)N Uniform series present worth F (1+IN Sinking fund i(1+1) (1+)-1 Capital recovery (F/A,1%,N) (P/A,1%,N) (A/F,i%,N) (A/P,1%,N) Nominal / Effective Interest i = (1+r/M)M 1, Depreciation di = B(R), dx = B(1 - R)-(R), di = B[1 - (1 - R), BV = B(1-R)