Reversing Rapids Co. purchases an asset for $131,856. This asset qualifies as a five-year recovery asset...

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Reversing Rapids Co. purchases an asset for $131,856. This assetqualifies as a five-year recovery asset under MACRS. The five-yearexpense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%,19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of30%. The asset is sold at the end of four years for $14,170.Calculate tax credit on disposal. (The answer should be entered aspositive value). Round the answer to two decimals.

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Reversing Rapids Co. purchases an asset for $131,856. This assetqualifies as a five-year recovery asset under MACRS. The five-yearexpense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%,19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of30%. The asset is sold at the end of four years for $14,170.Calculate tax credit on disposal. (The answer should be entered aspositive value). Round the answer to two decimals.

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