A company buys a manufacturing equipment for $25000 and sold it at the end of 4 years to an amount of $15000 (Salvage value). The equipment has a property class of 7 years. Using the MACRS method;

a) Calculate the depreciation in each year till it is sold.

b) Calculate the total depreciation amount.

c) Calculate the profit (gain) made from sale.

d) Calculate the tax to be paid if the tax rate is 40%.

e) Calculate the net proceeds from sale.