Income tax rate = 30%

Capital gains tax rate = 15%

1. Your company is considering investing in a new asset. The old asset, which has a book value of $100,000, can be sold for $85,000. The purchase price of the old asset was $450,000. What are the tax effects of the sale of the old asset?

2. Using the chart below, calculate the tax effects of this sale.

Book Value 200,000

Proceeds on Sale 377,000

Initial Purchase Price 350,000

3. Your company is considering investing in a new asset. The old asset, which has a book value of $100,000, can be sold for $100,000. The purchase price of the old asset was $500,000. What are the tax effects of the sale of the old asset?

4. Use the information below and from Problem 2 to find the net cash outlay for this project.

Cost of New Asset 385,500

Installation Costs 0

Decrease in Working Capital 6,000

This is as far as I have gotten. Please include formulas.

Amino A B 1 M4 IND ASS SUB TEMPLATE 2 Capital gains tax rate 15% 3 Income tax rate 0.30 4 PROBLEM 1 6 Old Asset 7 Book Value 100,000 8 Procoods on Sale 85,000 9 Initial Purchase Price 450,000 10 11 Outputs 12 Cash Distribution Table Distribution Tax Effects 13 Book Value 100000.00 14 Capital Gain 0.00 15 Capital Loss 15000.00 2250.00 16 Recaptured Depreciation 0.00 17 Proceeds on Sale 85000.00 18 19 PROBLEM 2 20 Old Asset 21 Book Value 200,000 22 Proceeds on Sale 377,000 23 Initial Purchase Price 350,000 24 25 Outputs 26 Cash Distribution Table Distribution Tax Effects 27 Book Value 200000.00 28 Capital Gain 27000.00 4050.00 29 Capital Loss 0.00 30 Recaptured Depreciation 150000.00 450.000,00 31 Proceeds on Sale 377000.00 32 33 PROBLEM 3 34 Old Asset 35 Book Value 100,000 36 Proceeds on Sale 100,000 37 Initial Purchase Price 500,000 38 39 Outputs 40 Cash Distribution Table Distribution Tax Effects 41 Book Value 100000.00 42 Capital Gain 0.00 43 Capital Loss 0.00 44 Recaptured Depreciation 0.00 45 Procoods on Sale 100000.00 46 47 PROBLEM 4 48 Inputs 49 Costof New Asset 385,500 50 Installation Costs 0 51 Old Asset 52 Book Value 100,000 53 Proceeds on Sale 100,000 54 Initial Purchase Price 500,000 55 Decrease in Working Capital 6,000 56 57 Outputs 58 Cash Distribution Table Distribution Tax Effects 59 Book Value 100,000.00 60 Capital Gain 61 Capital Loss 62 Recaptured Depreciation 63 Proceeds on Sale 64 65 Costof New Asset 66 Installation Costs 67 Proceeds on Sale,Old Asset 68 Taxes on Proceeds on Sale 69 Decrease in Working Capital 70 Net Cash Outlay 71