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Capital Gain/Loss of Brighton Corp.

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Brighton Corp. bought an oil rig exactly 6 years ago for $113,000,000. Brighton depreciates oil rigs straight line over 10 years assuming no salvage value. The rig was just sold to British Petroleum for $34,000,000. What Capital Gain/Loss will Brighton report on this transaction?

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Purchase Price = $113,000,000
Depreciation per year = (Purchase Price - salvage value ) / ...

Solution Summary

The solution helps to calculate capital gain/loss of Brighton Corp. with step-by-step workings.