This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A firm is selling an existing asset for 5,000. The asset, when purchased, cost 10,000, was being ... (Read 98 times)

Caiter2013

  • Hero Member
  • *****
  • Posts: 607
on: Jul 11, 2018
A firm is selling an existing asset for 5,000. The asset, when purchased, cost 10,000, was being depreciated under MACRS using a five-year recovery period and has been depreciated for four full years.
 
  If the assumed tax rate is 40 percent on ordinary income and capital gains, the tax effect of this transaction is ________.
  A) 0 tax liability
  B) 1,320 tax liability
  C) 1,160 tax liability
  D) 2,000 tax benefit

Question 2

The return on an asset is the change in its value plus any cash distribution over a given period of time, expressed as a percentage of its ending value.
 
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mcomstock09

  • Sr. Member
  • ****
  • Posts: 377
Reply #1 on: Jul 11, 2018
Answer to Question 1

B

Answer to Question 2

FALSE


Caiter2013

  • Hero Member
  • *****
  • Posts: 607
Reply #2 on: Jul 11, 2018
Thank you :)


mcomstock09

  • Sr. Member
  • ****
  • Posts: 377
Reply #3 on: Jul 11, 2018
Happy to help you


« previous next »
 

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

The Increasing Cost of Health Care, 1960–2010 The Increasing Cost of Health Care, 1960–2010
Greet a First-Time Client With a Firm Handshake. Greet a First-Time Client With a Firm Handshake.
Firm handshake Firm handshake
Management Information Systems: Managing the Digital Firm, 15th Edition Management Information Systems: Managing the Digital Firm, 15th Edition
question in cost accounting question in cost accounting
A company that makes cell phones has the following cost structure. They have fixed costs of ... A company that makes cell phones has the following cost structure. They have fixed costs of ...
Video: Bone cells and tissues - tissue composition and cells

For a complete list of videos, visit our video library