A piece of newly purchased industrial equipment costs $4,200,000, has a salvage value of $150,000 and is classified as a five-year property under MACRS. Calculate the annual depreciation allowances and the end-of-year book values for this equipment. If the equipment is sold for 30% of the initial cost in year 3, what is the after-tax cash flow from the sale if the tax rate is 35%? ?