Paper Writing Services your calculations for depreciating the equipment, and how ts impacts the capital gain or loss associated with the disposal of ts capital

In July of 2009, Mr. Mann, a sole proprietor who performs excavating services, purchased and put to use for business a piece of heavy equipment for $36,500. Ts piece of equipment was depreciated using the MACRS 150% DB method of depreciation over the useful period of 7 years. No salvage value was approximated and applied to the appreciable basis of ts equipment. Freight and installation charges for ts equipment totaled $1500. Mr. Mann sold ts piece of equipment for $31,500 in June of 2011. For ts task, define capital asset and discuss the purpose of depreciation of assets, and why depreciation directly affects valuation of the asset at disposal. Based on the information provided, determine the amount of capital gain or loss Mr. Mann incurred through ts transaction. Be certain to detail your calculations for depreciating the equipment, and how ts impacts the capital gain or loss associated with the disposal of ts capital asset. Explain how any gain on ts asset will impact the tax obligation for Mr. Mann as the proprietor.