A machine purchased two years ago for $100,000 is being depreciated using the 5-year asset-class MACRS depreciation schedule. After two years use, it is now being sold for $65,000. Assuming a 40% marginal tax rate, what is the after-tax salvage value of this machine?

The 5 year MACRS percentages are as follows;

Yr.1 = 20% Yr.2 = 32% Yr.3 =19% Yr.4 = 12% Yr.5 = 12% Yr.6 = 5%

		a) $ 41,200
		b) $ 54,800
		c) $ 58,200
		d) $ 58,800
		e) $ 71,800

A machine purchased two years ago for $100,000 is being depreciated using the 5-year asset-class MACRS depreciation schedule. After two years use, it is now being sold for $65,000. What is the gain on the sale?

The 5 year MACRS percentages are as follows:

Yr.1 = 20% Yr.2 = 32% Yr.3 =19% Yr.4 = 12% Yr.5 = 12% Yr.6 = 5%

		a) $ 13,000
		b) $ 15,000
		c) $ 17,000
		d) $ 36,000
		e) None of the above