Book value and taxes on sale of assetsTroy Industries purchased a new machine 3year(s) ago for $ 76,000

It is being depreciated under MACRS with a 5-year recovery period using the schedule. 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:

$91,200;

$53,200;

$$22,040;

and

$15,400.