Assume $21\%$ ordinary and capital gains tax rates.

a$.$ What is the book value of the machine?

b$.$ Calculate the firm's tax liability if it sold the machine for each of the following amounts: $$100,800$;$$58,800$;$$40,320$; and $$28,200.$

a$.$ The remaining book value is $$,($Round to the nearest dollar.$)$

ample Get more help $.$

Data table

Rounded Depreciation Percentages by Recovery Year Using MACRS for

First Four Property Classes

$*$These percentages have been rounded to the nearest whole percent to simplify calculations while

retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual

unrounded percentages or directly apply double$-$declining balance $(200\%)$ depreciation using the half$-$year

convention.