Book Name: Principles of Managerial Finance - 180 Day Option, 14th Edition

Lawrence J. Gitman

P2-7 Capital gains taxesAs part of its operations, Ferguson's Plumbing has bought and sold several nondepreciable capital assets. The purchase and sale prices for these assets are contained in the following table. Assuming that Fergurson's pays a 40% capital gains tax, complete the table by filling in the last two columns.

AssetSale pricePurchase priceCapital gain Tax

A $3,400 $3,000

B 12,000 12,000

C 80,000 62,000

D 45,000 41,000

E 18,000 16,500

I am getting stuck on this question, please provide me with a detail calculation steps on this question! Thank you highly appreciated!