Capital gains taxes The following table contains purchase and sale prices for the nondepreciable capital assets of a major corporation. The firm paid taxes of 40% on capital gains.
|
Asset
|
Purchase price
|
Sale price
|
|
A
|
$ 3,000
|
$ 3,400
|
|
B
|
12,000
|
12,000
|
|
C
|
62,000
|
80,000
|
|
D
|
41,000
|
45,000
|
|
E
|
16,500
|
18,000
|
a. Determine the amount of capital gain realized on each of the five assets.
b. Calculate the amount of tax paid on each of the assets.