A company purchased a piece of equipment for $155,000 and sells it after 3 years. The equipment is depreciated by the MACRS method using a five-year period. The annual maintenance cost of the equipment is $2,900. If the equipment is sold at end of 3 years for a value of $30,000, what will be the taxes that has to be paid from the sale of the equipment? Assume that the tax rate is 35%. O $6790 $7980 $8136 O No taxis to be paid
A company purchased a piece of equipment for $155,000 and sells it after 3 years. The equipment is depreciated by the MACRS method using a five-year period. The annual maintenance cost of the equipment is $2,900. If the equipment is sold at end of 3 years for a value of $30,000, what will be the taxes that has to be paid from the sale of the equipment? Assume that the tax rate is 35%. O $6790 $7980 $8136 O No taxis to be paid
Chapter11: Property Dispositions
Section: Chapter Questions
Problem 64P
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