A machine was purchased for $500,000 and had an installation cost of $20,000 and shipping charges of $5,000. It belongs to the MACRS 5 year class for depreciation purposes.

If it is sold for $100,000 at the end of year 4, what are the taxes due on the sale (assume a 21% tax rate)?

Use

Table 13.1 MACRS Depreciation Schedule

Year		Class
	3 years	5 years	7 years	10 years
1	41.67%	25.00%	17.85%	12.50%
2	38.89%	30.00%	23.47%	17.50%
3	14.14%	18.00%	16.76%	14.00%
4	5.30%	11.37%	11.97%	11.20%
5		11.37%	8.87%	8.96%
6		4.26%	8.87%	7.17%
7			8.87%	6.55%
8			3.34%	6.55%
9				6.56%
10				6.55%
11				2.46%
Total	100.00%	100.00%	100.00%	100.00%