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
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What will be an ideal response?
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What will be an ideal response?
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a. the internal auditors. b. management. c. the external auditors. d. the board of directors.