Equipment that was purchased for $800,000 has a current book value of $400,000.
Assume a capital gains tax rate of 28%.
Compute the net tax payment or savings if you sell the equipment for $703,933.Answer

-$%u201385,101, a savings on taxes
-$85,101, an increase in taxes
-$303,933, an increase in taxes
-$%u201326,899, a savings on taxes