You purchased an asset 3 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 0.2000,0.3200,0.1920,0.1152,0.1152,and 0.0576 for Years 1 to 6,respectively.Which one of the following statements is correct if the tax rate is 34 percent?
A) The current book value is $41,800.
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 $37,478.
E) The after-tax salvage value is $38,880.
Correct Answer:
Verified
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