Book value and taxes on sale of assets??

Troy Industries purchased a new machine 5 ?year(s) ago for $82,000. It is being depreciated under MACRS with a? 5-year recovery period using the schedule:

Assume 40% ordinary and capital gains tax rates.

a. What is the book value of the? machine?

book value = cost - accumulated depreciation

round to the nearest dollar

b. Calculate the? firm's tax liability if it sold the machine for each of the following? amounts:

1. $98,400

SALE PRICE: $98,400

CAPITAL GAIN:

TAX ON CAPITAL GAIN:

DEPRECIATION RECOVERY:

TAX ON RECOVERY:

TOTAL TAX:

ROUND TO THE NEAREST DOLLAR

2. $57,400

SALE PRICE: $57,400

CAPITAL GAIN:

TAX ON CAPITAL GAIN:

DEPRECIATION RECOVERY:

TAX ON RECOVERY:

TOTAL TAX:

ROUND TO THE NEAREST DOLLAR

3. $4,100

SALE PRICE: $4,100

CAPITAL GAIN:

TAX ON CAPITAL GAIN:

DEPRECIATION RECOVERY:

TAX ON RECOVERY:

TOTAL TAX:

ROUND TO THE NEAREST DOLLAR

4. $2,900

SALE PRICE: $2,900

CAPITAL GAIN:

TAX ON CAPITAL GAIN:

DEPRECIATION RECOVERY:

TAX ON RECOVERY:

TOTAL TAX:

ROUND TO THE NEAREST DOLLAR

Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year* 5 years 20% 32% 1996 12% 12% 5% 7 years 14% 25% 18% 12% 9% 9% 9% 4% 10 years 10% 18% 14% 12% 9% 5% 3 years Recovery year 45 15% 7% 4 6% 6% Print Done