Bill Sharpe, owner of Sharper Knives Inc., is closing his business at the end of the current fiscal year. His sole asset, the knife-sharpening machine, is four years old. A depreciation table for the asset is shown below. Bill has agreed to sell the machine at the end of the year for $100,000. What is the impact on taxes from the sale of the machine? (Assume that Sharper Knives claimed a regular depreciation expense in the calculation of income taxes.) The tax rate is 35%. Round your answers to the nearest dollar.
Depreciation Table for Knife Sharpener
| Year | Basis | Rate | Depreciation Expense | Accumulated Depreciation |
| 1 | $250,000 | 14.29% | $35,725 | $35,725 |
| 2 | $250,000 | 24.49% | $61,225 | $96,950 |
| 3 | $250,000 | 17.49% | $43,725 | $140,675 |
| 4 | $250,000 | 12.49% | $31,225 | $171,900 |
| 5 | $250,000 | 8.93% | $22,325 | $194,225 |
◦ $7,665 additional taxes owing to IRS
◦ $7,665 tax refund from IRS
◦ $25,165 additional taxes owing to IRS
◦ $25,165 tax refund from IRS
◦ $27,335 additional taxes owing to IRS
Bill Nye Quote
Bill Viola, The Greeting.
The first step in the reprogramming procedure is to determine the current software installed using a ...
Gulf Stream/North Atlantic Current
International Business Management
Bill Size in African Finches