An asset used in a three-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $885370 and will be sold for $108550 (before tax) at the end of the project, at the end of year 3. If the tax rate is 40%, what is the aftertax salvage value of the asset?

MACRS 5-year equipment

Year	Rate
1	20.00%
2	32.00%
3	19.20%
4	11.52%
5	11.52%
6	5.76%

Select one:

a. $126326.77

b. $50997.31

c. $254986.56

d. $85528.92

e. $167124.62