Vols Brewing Company has invested in a new beer bottling machine at a cost of $100,000. The machine will require an investment of $5,000 in spare parts inventory upon installation, and it will cost $7,000 to ship and $3,000 to install it.
The machine falls in the 3-year property class with MACRS Rates:
33% 45% 15% 7%
The firm's tax rate is 40%. The bottling machine will be sold for a salvage value of $25,000 at the end of year 3.
What is the book value of the machine at the end of year 3?
Enter your answer without a dollar sign but rounded to the nearest dollar and cent. E.g. $9.8744 would be entered as 9.87