Assume the stamping machine will now be used for only three years, owing to the company's losing several government contracts. The MV at the end of year three is $50,000. What is the income tax owed at the end of year three owing to depreciation recapture (capital gain)?
(a) $8,444
(b) $14,220
(c) $21,111
(d) $35,550
(e) $20,000