The following table contains purchase and sale prices for the non-depreciable capital assets of a corporation. The firm pays taxes of 35% on capital gains. Asset Purchase Price Sale Price A $4,500 $5,000 BC $10,000 $9,800 $25,000 $33,500 D $15,200 $15,200 E $8,400 $11,200 a. Determine the amount of capital gain (or loss) realized on each of the five assets. b. Calculate the amount of tax paid on each of the assets.
The following table contains purchase and sale prices for the non-depreciable capital assets of a corporation. The firm pays taxes of 35% on capital gains. Asset Purchase Price Sale Price A $4,500 $5,000 BC $10,000 $9,800 $25,000 $33,500 D $15,200 $15,200 E $8,400 $11,200 a. Determine the amount of capital gain (or loss) realized on each of the five assets. b. Calculate the amount of tax paid on each of the assets.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 16P
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Calculate the amount of capital gain
Transcribed Image Text:The following table contains purchase and sale prices for the non-depreciable capital assets of a corporation. The
firm pays taxes of 35% on capital gains.
Asset
Purchase Price Sale Price
A
$4,500
$5,000
BC
$10,000
$9,800
$25,000
$33,500
D
$15,200
$15,200
E
$8,400
$11,200
a. Determine the amount of capital gain (or loss) realized on each of the five assets.
b. Calculate the amount of tax paid on each of the assets.
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