A question in relation of capital budgeting for a 10 year project.

Say the tax rate for below question is 35%.

The buildings cost $200 000 have an estimated life of 20 years at which time their salvage value would be zero. They are to be depreciated on a straight line (prime cost) basis for tax purposes based on this life. The salvage value of the buildings after 10 years is expected to be $50,000.

The equipment cost $400 000 has an estimated life of 10 years and a zero salvage value. The equipment is to be depreciated on a straight line (prime cost) basis for tax purposes based on this life.

What are the tax implications? Is there is gain or loss and how would you account for this in year 10 of the cash flow. Could you provide an example.