Equipment that was purchased for $550,000 has a current book value of $275,000.
Assume a capital gains tax rate of 28%.
Compute the net tax payment or savings if you sell the equipment for $186,267.
a. $-88,733, a savings on taxes
b. $24,845, an increase in taxes
c. $-24,845, a savings on taxes
d. $-101,845, a savings on taxes