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Equipment that was purchased for $900,000 has a current book value of $450,000. Assume a capital gains tax rate of 28%. Compute the net tax payment or savings if you sell the equipment for $271,400.
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Equipment that was purchased for $900,000 has a current book value of $450,000. Assume a capital gains tax rate of 28%. Compute the net tax payment or savings if you sell the equipment for $271,400.

User PRATHAP S
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1 Answer

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Answer: Savings on taxes of -$50,008‬

Step-by-step explanation:

Book Value = $450,000

Selling Price = $271,400

Book Value is more than selling price so there is a Capital loss.

Capital gains tax will therefore become a tax saving of;

= 28% * (271,400 - 450,000)

= ‭-$50,008‬

User Yasan Glass
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