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Capital Gains Taxes As part of its operations , Ferguson's Plumbing has bought and sold various non-depreciable capital assets. The purchase and sale prices of
Capital Gains Taxes As part of its operations , Ferguson's Plumbing has bought and sold various non-depreciable capital assets. The purchase and sale prices of these assets are contained in the following table. Assuming that Ferguson pays a 40% capital gains tax , complete the table by completing the last two columns.
Asset | Sale price | Purchase price | capital gain | Tax |
A | $ 4, 224 | $ 3, 520 | ¿? | ¿? |
B | 11 380 | 11 380 | ¿? | ¿? |
C | 86 394 | 61 , 710 | ¿? | ¿? |
D | 43 , 061 | 41 , 010 | ¿? | ¿? |
mi | 17 , 776 | 16 , 160 | ¿? | ¿? |
Determine the amount of realized capital gain on each of the five assets.
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
14th edition
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