9.38 In tax year 1, an electronics-packaging firm had a gross income of $35,000,000, $6,000,000 in sala ries, $7,000,000 in wages, $800,000 in depreciation expenses, a loan principal payment of $200,000, and of 10 years and a salvage value of $40,000. The company has been using the seven-year MACRS property class to depreciate the asset for tax pur poses. At the end of year 4, the company sold the equipment for $120,000. The tax rate is 40%. What are the net proceeds (after tax) from the sale of the equipment?