Blue Sky Corporation purchased a machine for use in the firm's manufacturing process. The original cost of the machine was $1,800,000. The machine has a class life of 15 years, but after 13 years, the firm has decided to sell the machine for $320,000. If Blue Sky has a marginal tax rate of 34%, what is the tax effect associated with the decision? $40,800 refund $27,200 refund $136,000 payment $108,000 payment $27,200 payment