Book value and taxes on sale of assets Troy Industries purchased a new machine 3 year(s) ago for $78,000. It is being depreciated under MACRS with a 5-year recovery period using the schedule 3. Assume 40% 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: $93,600; $54,600; $22,620; and $15,800. a. The remaining book value is $ (Round to the nearest dollar.) the icon located on the top-right corner of the data table below in order to contents into a spreadsheet.) 3 years 10 years Depreciation Percentages by Recovery Year Using MACRS for ur Property Classes Percentage by recovery year* Fery year 5 years 7 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 12% 12% 12% 5 12% 9% 9% 6 5% 9% 8% 7 9% 7% 4% 6% 9 6% 10 6% 11 4% btals 100% 100% 100% 100% ercentages have been rounded to the nearest whole percent to simplify calculations while realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual ed percentages or directly apply double-declining balance (200%) depreciation using the convention. NO 000