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    Capital gains taxes: Perkins Manufacturing

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    Capital gains taxes: Perkins Manufacturing is considering the sale of two non-depreciable assets, X and Y. Asset X was purchased for $1,900 and will be sold today for $2,460. Asset Y was purchased for $40,000 and will be sold today for $49,600. The firm is subject to a 37% tax rate on capital gains.

    a. Calculate the amount of capital gain, if any, realized on each of the assets.

    Capital gain on Asset X =

    Capital gain on Asset Y =

    b. Calculate the tax on the sale of each asset

    Tax on the sale X =
    Tax on the sale Y =

    See attached document.

    © BrainMass Inc. brainmass.com June 4, 2020, 12:29 am ad1c9bdddf
    https://brainmass.com/statistics/descriptive-statistics/capital-gains-taxes-perkins-manufacturing-341797

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    Solution Summary

    The solution provides step by step method for the calculation of capital gain and tax on sale of assets at Perkins Manufacturing.

    $2.19

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