A company is thinking to sell an asset since it will be replaced by a higher capacity one. The estimated sale price of the asset is $300,000 while the asset has depreciated to the salvage value of $500,000. If the company has the marginal tax rate of 35%, what is the tax implication of the sale of this asset? Round to the nearest penny. If tax llabilities, type a negative sign in front. Do not include a dollar sign in your answer. (I. e. If your answer is tax liabilites of 58, 765, 43, type-8765.43; if tax shield of S8, 76543 type 8765.43).

A company is thinking to sell an asset since it will be replaced by a higher capacity one. The estimated sale price of the asset is $300,000 while the asset has depreciated to the salvage value of $500,000. If the company has the marginal tax rate of 35%, what is the tax implication of the sale of this asset? Round to the nearest penny. If tax llabilities, type a negative sign in front. Do not include a dollar sign in your answer. (I. e. If your answer is tax liabilites of 58, 765, 43, type-8765.43; if tax shield of S8, 76543 type 8765.43).

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 73TA

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