2011 Mock AM Q27 net, 2011, question, selling, capital

bapswarrior

The question asks for equity reversion after tax.
why capital gain = gain on sale - depreciation? (gain on sale = net selling price - purchasing price + dep)
shouldn’t it be net selling price - depreciation?

justin88

no since selling price - book  = total gain
total gain - dep = capital gain
and then you recapture your tax on depreciation

former

got it. Thanks!!