An asset was purchased three years ago for $215,000. It falls into the five-year category for MACRS depreciation. The firm is in a 40 percent tax bracket. Use Table 12–12.

a. Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $24,560. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.)

Tax loss on the sale $

Tax benefit $

b. Compute the gain and related tax on the sale if the asset is sold now for $75,060. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.)

Taxable gain $

Tax obligation $