A company is planning to sell old equipment that was purchased 10 years ago for $1,500,000. The market value of the equipment is $500,000. The equipment has depreciated to a book value of 100,000. What is the tax implication of the sale of this equipment? The companys marginal tax rate is 34%. tax liability of $34,000 tax liability of $136,000 tax savings of $34,000 tax savings of $136,000

• tax liability of $34,000
• tax liability of $136,000
• tax savings of $34,000
• tax savings of $136,000