An asset purchased for $100,000 with S = $20,000 after 5 years was depreciated using the 5-year

Question:

An asset purchased for $100,000 with S = $20,000 after 5 years was depreciated using the 5-year MACRS rates. Expenses averaged $18,000 per year, and the effective tax rate is 30%. The asset was actually sold after 5 years of service for $22,000. MACRS rates in years 5 and 6 are 11.53% and 5.76%, respectively. The after-tax cash flow from the sale is closest to:

(a) $27,760

(b) $17,130

(d) $20,585