Tax losses and gains in capital budgeting

An asset was purchased three years ago for $175,000. It falls into the five-year category for MACRS depreciation. The firm is in a 30 percent tax bracket. Use Table 12–

(A) Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $20,560. (Round "Percentage depreciation" to 3 decimal places. Input all amounts as positive values. Omit the "$" sign in your response.)

Tax loss on the sale: ___?___

Tax Benefit: ___?___

(B) Compute the gain and related tax on the sale if the asset is sold now for $67,060. (Round "Percentage depreciation" to 3 decimal places. Input all amounts as positive values. Omit the "$" sign in your response.)

Taxable Gain: ___?___

Tax Obligation: ___?___