Complete the following:
Capital gains taxes: Perkins Manufacturing is considering the sale of two non-depreciable assets, X and Y. Asset X was purchased for $1,900 and will be sold today for $2,460. Asset Y was purchased for $40,000 and will be sold today for $49,600. The firm is subject to a 37% tax rate on capital gains.
a. Calculate the amount of capital gain, if any, realized on each of the assets.
Capital gain on Asset X =
Capital gain on Asset Y =
b. Calculate the tax on the sale of each asset
Tax on the sale X =
Tax on the sale Y =