A piece of equipment is bought for $70,000 and is depreciate
Question
Q1) A piece of equipment is bought for $70,000 and is depreciate, with a salvage value of $2,000. At the end of 5 years the equipment was sold for $35,000. If the company is in the 36% tax bracket, compute the taxes owed after selling this equipment in year 5 if:
a)Using Straight Line Depreciation and a life of 7 years:
b)Using MACRS 7 year property depreciation:
