Question
Universal Foods purchased an oven for $15,000.The MACRS depreciation class for the oven was 7 years.At the end of year five Universal Foods sold the
Universal Foods purchased an oven for $15,000.The MACRS depreciation class for the oven was 7 years.At the end of year five Universal Foods sold the oven for $2,000.What is thetax liability (or gain) on the sale, assuming a tax rate of 40 percent?
a. $539
b. $1,339
c. $2,008
d. $3,347
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
