=+LG 3 LG 4 P11–9 Tax calculations An asset was purchased 5 years ago for $460,200 and is being depreciated under MACRS, using a 7-year recovery period. (See Table 4.2 for the applicable depreciation percentages.) For each of the following cases, determine the total taxes payable, with a 20% tax rate.

a. The asset is sold for $725,000.