Freeman Engineering paid $28,500 for specialized equipment for use with their new GPS/GIS system. The equipment was depreciated over a 3-year recovery period using MACRS depreciation. The company sold the equipment after 2 years for $5000 when it purchased an upgraded system. (a) Determine the amount of the depreciation recapture or capital loss involved in selling the asset. (b) What tax effect will this amount have?
What will be an ideal response?
(a) BV2 = 28,500 – 28,500(0.3333 + 0.4445) = $6333
CL = 6333 – 5000 = $1333
(b) Capital losses can only be used to offset capital gains. This will reduce taxes on the gains. If there are no gains, carry-forward and carry-back allowances may apply.
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What will be an ideal response?
____________________ can encompass all of the major individual categories, subjects, and types of paperwork pertinent to a company's daily business.
Fill in the blank(s) with the appropriate word(s).
The goal of ________ is to ________.
A. Marketing mix; describe the price, product, promotion, and channels B. Target segments; create a clear statement C. Customer relationship management; state the terms and conditions D. Marketing objectives; identify one or more customer targets
____ lines are used to indicate an object's size, as well as the sizes and the locations of its features.
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