Book value and taxes on sale of assetsTroy 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 Assume 21% 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.

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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 . Assume 21% 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.) Data table 10 years 12% First Four Property Classes Percentage by recovery year* Recovery year 3 years 5 years 7 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 12% 12% 5 12% 9% 9% 5% 9% 8% 7 9% 7% 4% 6% 9 6% 698 11 49 Totals 100% 10090 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while Print Done