A company is planning to sell old equipment that was purchased 13 years ago for $1,600,000. The market value of the equipment is $300,000. The equipment has depreciated to a book value of $500,000. What is the tax implication of the sale of this equipment? The companys marginal tax rate is 34%.

• tax liability of $68,000
• tax savings of $68,000
• tax savings of $102,000
• tax liability of $102,000