Book value and taxes on sale of assets Troy Industries purchased a new machine $2$ year$($s$)$ ago for $$84,000.$ 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: $$100,800$;$$58,800$;$$40,320$;

and $$28,200.$

a$.$

Data table

$($Click on the icon located on the top$-$right corner of the data table below in order to

copy its contents into a spreadsheet.$)$

Rounded Depreciation Percentages by Recovery Year Using MACRS for

First Four Property Classes