Gains or Losses
Consider a five year MACRS asset purchased at $60,000. (Note that a five year MACRS property class is depreciated over six years, due to the half year convention.
TABLE P9.36
The applicable salvage values would be $20,000 in year 3, $10,000 in year 5, and $5,000 in year 6.) Compute the gain or loss amounts when the asset is disposed of
(a) In year 3.
(b) In year 5.
(c) In year 6.