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Several years ago, PTR purchased business equipment for $50,000. PTR’s
accumulated book
accumulated tax depreciation is $41,000.
Required:
a.Compute PTR’s book and tax basis in the equipment.
b. Using a 21 percent tax rate, compute PTR’s
which) resulting from the difference between accumulated book and tax
depreciation.
c. Compute PTR’s book and tax gain if it sells the equipment for $14,750.
|
|
Amount
|
|
Book gain
|
$1,950
|
|
Tax gain
|
$5,750
|
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