Bill Sharpe, owner of Sharper Knives Inc., is closing his business at the end of the current fiscal year. His sole asset, the knife-sharpening machine, is three years old. A depreciation table for the asset is shown below. Bill has agreed to sell the machine at the end of the year for $100,000. What is the impact on taxes from the sale of the machine? (Assume that Sharper Knives claimed a regular depreciation expense in the calculation of income taxes.) The tax rate is 35%. Round your answers to the nearest dollar. Depreciation Table for Knife Sharpener 1 Year Basis Rate $250,000 14.29% 2 $250,000 24.49% 3 $250,000 17.49% 4 $250,000 12.49% 5 $250,000 8.93% $14,236 additional taxes owing to IRS $3,264 additional taxes owing to IRS $3,264 tax refund from IRS $38,264 tax refund from IRS $14,236 tax refund from IRS Depreciation Accumulated Expense Depreciation $35,725 $35,725 $61,225 $96,950 $43,725 $140,675 $31,225 $171,900 $22,325 $194,225