Compute recaptured depreciation and capital gain loss if


A piece of equipment was purchased three years ago for $100,000 and can be sold for $40,000 today. The asset has been depreciated using the MACRS 5-year recovery period and the firm pays 40 percent taxes on both ordinary income and capital gain. Compute recaptured depreciation and capital gain (loss), if any and also find the tax liability.

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Risk Management: Compute recaptured depreciation and capital gain loss if
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