Assume that today is December 31, 2015. Mike Mulligan Excavation Inc. has one Caterpillar 345DL Hydraulic Excavator. It was purchased at the beginning of 2014 for $280,000. The excavator is classified as a 10-year property. (see the MACRS depreciation rates on PolyLearn, or google it.)

What would the book value of that excavator be at the end of 2015. [To be clear, this would be two years of depreciation.]

Round to the nearest dollar.

How much tax would be due on the sale of the excavator described above if the tax rate was 35% and the equipment was resold for $225,000?

Round to the nearest dollar.