A corporation is selling an existing asset for 1,000. The asset, ...

[nevelica]

A corporation is selling an existing asset for 1,000. 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) 1,100 tax liability
  C) 3,600 tax liability
  D) 280 tax benefit

Question 2

Financial markets are intermediaries that channel the savings of individuals, businesses, and government into loans or investments.
 
  Indicate whether the statement is true or false

[brbarasa]

Answer to Question 1

D

Answer to Question 2

FALSE

[nevelica]

Excellent

[coreycathey]

TYSM