Three Years Ago, Stock Tek Purchased Some Five-Year MACRS Property

Three years ago, Stock Tek purchased some five-year MACRS property for $82,600.Today, it is selling this property for $31,500.How much tax will the company owe on this sale if the tax rate is 34 percent? The MACRS allowance percentages are as follows, commencing with Year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent.

A) -$2,451.81
B) -$5,857.08
C) $0
D) $5,857.08
E) $2,621.81

Correct Answer:

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