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Question text

A mixer was purchased two years ago for $$118376$ and can be sold for $$\{$B$)$ today. The mixer has been depreciated using the MACRS $5-$year recovery period, and the firm pays $40$ percent taxes on both ordinary income and capital gain. Find the total gain from this transaction.

Note: use one decimal place. Insert number only. Refer to the MACRS table in the slides.

Answer

TABLE $4\mathrm{.}2$

Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes

$\backslash$table$[[$Recovery year,Percentage by recovery year$],[3$ years,$5$ years,$7$ years,$10$ years$],[1,33\%,20\%,14\%,10\%$