6/6/2018 2. Book value and taxes on sale of assets Troy Industries purchased a new machine 2 year(s) ago for $80,000. It is being capital gains tax Assume 40% ordinary and depreciated under MACRS with a 5-year recovery period using the schedule What is the book value of the machine? b. Calculate the firm's tax liability if it sold the machine b. Calculate the firm's tax Iiability if it sold the machine for each of the following amounts: $96,000: $56,000: $38,400: and $26,900. ?. The remaining book value is $ b. Calculate the firm's tax iability for each case: (Round to the nearest dolar.) (Round to the nearest dollar.) Total Tax on Depreciation Tax on Capital Galn Recovery Recovery Capital Sale Price Gain 96,000s (Round to the nearest dollar.) Sale Price Total Tax on Depreciation Tax on Capital Gain Recovery Capital Recovery Tax Gain 56,000 $ Round to the nearest dollar.) Total Tax on Depreciation Tax on Capital Gain Capital Gain Recovery Recovery Price 38,400 $ (Round to the nearest dollar.) Total Tax on Depreciation Tax on Capital Gain Recovery Recovery Price Gain 26,900$S 1: Data Table (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year* 3 years 33% 45% 15% 5years7 years 14% 25% 18% 12% 10 years 10% 18% 14% 12% Recovery year 20% 19% 12% 12% 4% 10 4%