A corporation is selling an existing asset for $1,700. 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) $840 tax liability
C) $3,160 tax liability
D) $3,160 tax benefit
A
You might also like to view...
The temporary work visa granted by the U.S. government:
A. allows workers to permanently bring their spouse and children to the United States. B. permits the workers to remain in the U.S. as immigrants. C. provides dual citizenship to highly qualified and valued immigrants. D. permits highly educated workers to work in the U.S. for a set period of time. E. allows the workers to work permanently in the U.S
Which of the following is NOT one of the stated trends in technology identified as contributing to increasing traffic and services in networks?
A. The emergence of the Internet B. More and more people are discovering the World Wide Web as a valuable resource C. The ever-increasing use of mobile devices and applications D. Increasing quality and variety of services in both voice and data networks