In comparing the Interest income with the divident income it is evident that

# In comparing the interest income with the divident

• Homework Help
• 24
• 100% (29) 29 out of 29 people found this document helpful

This preview shows page 20 - 24 out of 24 pages.

Points earned: /5 (1 point each) NOTE: Must show calculations to earn B. Divided income form Zig co. Taxes on Divided income After tax amount
n credit. \$20,000 \$20,000 * 40% \$8,000 \$12,000 \$20,000 m Tank \$20,000 70% \$14,000 m Tank Ind. \$6,000 \$6,000 40% \$2,400 \$2,400 \$17,600
a. Calculate the amount of capital gain, if any, realized on each of the assets. b. Calculate the tax on the sale of each asset. P2-6 Capital gains taxes Perkins Manufacturing is considering the sale of two nondepreciable assetswas purchased for \$2,000 and will be sold today for \$2,250. Asset Y was purchased for \$30,000 and wfor \$35,000. The firm is subject to a 40% tax rate on capital gains.
Points earned: /2 (1 point each) NOTE: Must show calculations to earn credit. A. Asset X sale price \$2,250 Purchase price \$2,000 Net Gain \$250 Asset Y sale Price \$35,000 Purchase Price \$30,000 Net Gain \$5,000 B. Tax on sale of Asset X \$250 40% \$100 Tax on sale of Asset Y \$5,000 40% \$2,000 , X and Y. Asset X will be sold today