Business Finance - Check/Help

posted by .

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!

  • Business Finance - Check/Help -

    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.

    Sra

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Finance

    Your firm purchased machinery for $10 million. The machinery falls into asset class 38, which has a CCA rate of 25 percent. The project will end after 5 years. If the equipment can be sold for $4 million at the completion of the project …
  2. Accounting

    Jeff Corporation purchased a limited-life intangible asset for $120,000 on May 1, 2006. It has a useful life of 10 years. What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2008?
  3. Accounting

    Rich Corporation purchased a limited-life intangible asset for $180,000 on May 1, 2006. It has a useful life of 10 years. What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2008?
  4. Math

    An asset is purchased for$50,000.It has an estimated useful life of 12 years and a salvage value of $5,000. What is the annual depreciation of the asset using the straight-line method?
  5. Math

    An asset is purchased for $50,000. It has an estimated useful life of eight years and salvage value of $6,000.if the asset is depreciated using the double-declining balance method,what are the depreciation expense and book value at …
  6. Accounting

    1. A company acquired some land for $80,000 to construct a new office complex. Legal fees paid were $2,300, delinquent taxes assumed were $3,400 and $5,850 was paid to remove an old building. What is the cost basis for the land?
  7. Business Maths

    Please show me how to calculate this problem: During 2007, Sitter Corporation reported net sales of $2,000,000, net income of $1,200,000, and depreciation expense of $100,000. Sitter also beginning total asset of $1,000,000, ending …
  8. Business Finance

    I came up with 4.80 per share for the question. A mutual fund has total assets of $57,000,000 and liablities of $8,550,000. If $15,960,000 shares outstanding, what is the net asset value of the fund?
  9. business math

    An asset is purchased for $50,000. It has an estimated useful life of 12 years and a salvage value of $5,00
  10. Managerial Accounting

    Kim Johnson purchased an asset for $80,000. Annual operating cash inflows are expected to be $30,000 each year for four years. At the end of the life of the asset, Kim will not be able to sell the asset because it will have no salvage …

More Similar Questions