Problem 12-31 Tax losses and gains in capital budgeting [LO12-2] An asset was purchased three years ago for $120,000. It falls into the five-year category for MACRS depreciation. The firm is in a 25 percent tax bracket. Use Table 12-12. a. Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $15,060. (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 $56,060. (Do not round intermediate calculations and round your answers to whole dollars.) Taxable gain Tax obligation Table 12-12 Depreciation percentages (expressed in decimals) Depreciation 3-Year 5-Year Year MACRS MACRS 1 234 567 co 8 9 406 10 11 12 13 14 15 16 17 18 19 20 21 **********.. ********* wwwwwww ********** ***** ******** 0.333 0.445 0.148 0.074 1.000 0.200 0.320 0.192 0.115 0.115 0.058 1.000 7-Year 10-Year 15-Year MACRS MACRS MACRS 0.143 0.245 0.175 0.125 0.089 0.089 0.089 0.045 1.000 0.100 0.180 0.144 0.115 0.092 0.074 0.066 0.066 0.065 0.065 0.033 1.000 0.050 0.095 0.086 0.077 0.069 0.062 0.059 0.059 0.059 0.059 0.059 0.059 0.059 0.059 0.059 0.030 1.000 20-Year MACRS 0.038 0.072 0.067 0.062 0.057 0.053 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.017 1.000