Question
Genetic Insights Co. purchases an asset for $19,552. This asset qualifies as a seven- year recovery asset under MACRS. The seven-year foxed depreciation percentages
Genetic Insights Co. purchases an asset for $19,552. This asset qualifies as a seven- year recovery asset under MACRS. The seven-year foxed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29 %, 24.49 %, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $4,257. Calculate tax paid on gain on disposal. Round the answer to two decimals.
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