1. Genetic Insights Co. purchases an asset for $10,522. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $3,906
2. Which of the following would be an example of a capital gain? Buying a sports car for 100,000 and selling it for 90,000 a year later Buying stocks in Nike for $5,000 and selling them for $6,000 a year later Holding stock in Apple and getting a dividend check in the mail All of the above.