Troy Industries purchased a new machine 3 years ago for $80,000. It's being depreciated under MACRS with a 5 year recovery period using the percentages given in the MACRS table (la tabla se incluye en la primera página del examen). Assume a 40% tax rate.
a. What is the book value of the machine?
b. Calculate the firm tax liability if it sold the machine for each of the following amounts: $100,000; $56,000; $23,200 and $15,000.