A) A piece of newly purchased industrial equipment costs $745,000 and is classified as seven-year property under MACRS. Calculate the annual depreciation allowances and end-of-the-year book values for this equipment.

B) An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6.8 million and will be sold for $1.46 million at the end of the project. If the tax rate is 23 percent, what is the aftertax salvage value of the asset?