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Problem 1 2 - 2 9 ( Algo ) Tax losses and gains in capital budgeting [ L 0 1 2 - 2 ] An
Problem Algo Tax losses and gains in capital budgeting L
An asset was purchased three years ago for $ It falls into the fiveyear category for MACRS depreciation. The firm is in a percent tax bracket. Use Table
a Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $
Note: Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.
Tax loss on the sale
Tax benefit
b Compute the gain and related tax on the sale if the asset is sold now for $
Note: Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.
Taxable gain
Tax obligation
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