Several years ago, PTR purchased business equipment for $50,000. PTRs accumulated book depreciation with respect to the equipment is $37,200, and its accumulated tax depreciation is $41,000.

Required:

a. Compute PTRs book and tax basis in the equipment.

	Amount
Book basis	?
Tax basis	?

b. Using a 21 percent tax rate, compute PTRs deferred tax asset or liability (identify which) resulting from the difference between accumulated book and tax depreciation.

	Amount
Difference between book and tax depreciation	?
Deferred tax asset or Liability ?	?

c. Compute PTRs book and tax gain if it sells the equipment for $14,750.

	Amount
Book gain	?
Tax gain	?