Equipment that was purchased for $350,000 has a current book value of $175,000. Assume a capital gains tax rate of 28%. Compute the net tax payment or savings if you sell the equipment for $138,733.

Assume you plan to start a new enterprise; you know the probability of having losses for the first three years of operations is almost 90 percent, and you know you will report a substantial amount of income from other sources during those same three years. from a tax perspective, which of the following entity choices would not allow you to offset the entity losses against your income from other sources? c corporation s corporation llc general partnership