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Arthur Curry purchased equipment for Amnesty Aquatics six years ago at a cost of $75,000. Amnesty Aquatics has been depreciating the equipment over its 20-year

Arthur Curry purchased equipment for Amnesty Aquatics six years ago at a cost of $75,000. Amnesty Aquatics has been depreciating the equipment over its 20-year useful life to a $0 salvage value using straight-line depreciation. Amnesty Aquatics no longer needs this equipment, so they plan to sell the equipment at the current selling price of $82,500. If Amnesty Aquatics is in the 35% tax bracket and there is a 15% tax on capital gains, what is the total amount of the tax shield (liability) associated with this sale?

A. ($7,875)

B. ($9,000)

C. ($10,500)

D. ($15,000)

E. ($28,875)

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