You purchased an asset three years ago at a cost of $135,000 and sold it today for $82,500.The equipment is 5-year property for MACRS.The MACRS table values are .2000,.3200,.1920,.1152,.1152,and .0576 for Years 1 to 6,respectively.Which one of the following statements is correct if tax rate is 34 percent?
A) The current book value is $64,800.
B) The taxable amount on the sale is $38,880.
C) The tax due on the sale is $14,830.80.
D) The book value today is $8,478.
E) The aftertax salvage value is $24,049.20.
Correct Answer:
Verified
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