Question
Capital gains taxes As part of its operations, Ferguson's Plumbing has bought and sold several nondepreciable capital assets. The purchase and sale prices for these
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 Ferguson's pays a 40% capital gains tax, complete the table by filling in the last two columns.
Asset | Sale price | Purchase price | Capital gain | Tax |
A | $ 2 comma 775$2,775 | $ 2 comma 220$2,220 | ? | ? |
B | 11 comma 36011,360 | 11 comma 36011,360 | ? | ? |
C | 78 comma 33878,338 | 62 comma 67062,670 | ? | ? |
D | 44 comma 04844,048 | 41 comma 95041,950 | ? | ? |
E | 17 comma 76617,766 | 16 comma 92016,920 | ? | ? |
Determine the amount of capital gain realized on each of the five assets.
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