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 101 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?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

John Lewis Krimmel’s painting of the Fourth of July in Centre Square Philadelphia (1812) shows the d John Lewis Krimmel’s painting of the Fourth of July in Centre Square Philadelphia (1812) shows the d
Typical Startup Cost Categories Cont. Typical Startup Cost Categories Cont.
Firm handshake Firm handshake
Cost of Laptops Cost of Laptops
question in cost accounting question in cost accounting
Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ... Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ...
Video: Muscle cell structures - actin, myosin and titin filaments

For a complete list of videos, visit our video library