Abernathy Enterprises is considering replacing the existing press with a more efficient press. The new press costs $23,007 and requires $1,661 in installation costs. The old press was purchased 4 years ago for an installed cost of $43,173 and can be sold for $1,884net of any removal costs today. The New Press will increase revenue by $30000 and cut costs by $10000. Both presses are depreciated under the MACRS 5-YEAR recovery schedule. The firm is in 40% marginal rate.

The depreciation rates for the assets under 5 year MACRS are as follows

20% for year 1, 32% for year2, 19% for year 3, 12% for year 4, 12 % for year 5 and 5% for year 6.

Calculate the book value of the asset being replaced