How to calculate tax credit on disposal?

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Reversing Rapids Co. purchases an asset for $104,355. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of four years for $11,004.

 Calculate tax credit on disposal. (The answer should be entered as positive value). Round the answer to two decimals.

Oct 5th, 2015

Thank you for the opportunity to help you with your question!

Please download the attach file tax credit.xlsx

Tax credit on disposal = $21,08.56 (two decimals)

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Oct 5th, 2015

Thank you!

Oct 5th, 2015

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