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The following information is from Robin Hood Inc. Advertising Expenses $ (400,000) Capital Gains $ 150,000 Capital Losses (this year) $ (200,000) Capital Losses (prior

The following information is from Robin Hood Inc.

Advertising Expenses

$ (400,000)

Capital Gains

$ 150,000

Capital Losses (this year)

$ (200,000)

Capital Losses (prior year)

$ -

Cost of Goods Sold

$ (4,000,000)

Dividend "A" income

$ 200,000

Dividend "B" income

$ 100,000

Dividend "C" income

$ 50,000

General and Admin Expenses

$ (1,300,000)

Interest Expense

$ (500,000)

Sales

$9,000,000

  1. In addition, Robin purchased equipment at the beginning of the year for $750,000. The equipment has a useful life and a salvage value of 14 years and $50,000 respectively. Robin wishes to deduct the maximum amount of depreciation on its tax return. How much can it deduct on the equipment?
  2. How much of Robins capital gains are taxable?

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