nework Quiz/Test Tax calculations For each of the following cases, determine the total taxes resulting from the transaction Assume a 40% tax rate. The asset was purchased 2 years ago for $190,000 and is being depreciated under MACRS using a 5-year recovery period a. The asset is sold for $217,800 b. The asset is sold for $148,500. c. The asset is sold for $95,040 d. The asset is sold for $76,000 Calculate the firm's tax liability for each case (Round to the nearest dollar) Total Sale Price Capital Gain Tax on Capital Gain Depreciation Recovery $ Tax S 217,800 $ $ S Tax on Recovery S Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year 5 years 3 years Recovery year 7 years 1 33% 20% 14% 2 45% 25% 32% 15% 19% 18% 7% 12% 12% 12% 5% 9% 4% 100% 100% 100% 3 10 11 Totals 10 years 10% 18% 14% 12% 9% 8% 7% 6% 6% 6% 4% 100%