Explore BrainMass
Share

Capital Gain/Loss of Brighton Corp.

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

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?

© BrainMass Inc. brainmass.com September 20, 2018, 8:19 pm ad1c9bdddf - https://brainmass.com/economics/finance/575200

Solution Preview

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.

$2.19