Problem:
Perkins Manufacturing is considering the sale of two nondepreciable assets, X and Y. Asset X was purchased for $2,000 and will be sold today for $2,250. Asset Y was purchased for $30,000 and will be sold today for $35,000. The firm is subject to a 40% tax rate on capital gains.
Required:
Question 1: Calculate the amount of capital gain, if any, realized on each of the assets.
Question 2: Calculate the tax on the sale of each asset.
Note: Please explain comprehensively and give step by step solution.