Question
Equipment that was purchased for $650,000 has a current book value of $325,000. Assume a capital gains tax rate of 28%. Compute the net tax
Equipment that was purchased for $650,000 has a current book value of $325,000. Assume a capital gains tax rate of 28%. Compute the net tax payment or savings if you sell the equipment for $187,333.
| A. | $137,667, a savings on taxes | |
| B. | $38,547, an increase in taxes | |
| C. | $38,547, a savings on taxes | |
| D. | $129,547, a savings on taxes |
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Portfolio Performance Measurement And Benchmarking
Authors: Jon Christopherson, David Carino, Wayne Ferson
1st Edition
0071496653, 978-0071496650
