Business Finance - Check/Help
posted by Sam .
Smith Manufacturing is considering the sale of two non depreciable assets, A and B. Asset A was purchased for $2000 and will be sold today for $2250. Asset B was purchased for $30,000 and will be sold today for $35000. The firm is subject to a 40% tax rate on capital gains.
1. Calculate the amount of capital gain realized on each of the assets.
Answer: I got $250 for A and $3000 for B
2. Calculate the tax on the sale of each asset.
Answer: Need help please...thanks!
I can see the $250 but not the $3000? I see $5,000? Now take 40% of each total for the tax on each one.