Capital gains tax)

The J. Harris Corporation is considering selling one of its old assembly machines. The machine, purchased for $30,000 5 years ago, had an expected life of 10 years and an expected salvage value of zero. Assume Harris uses simplified straight-line depreciation (depreciation of 10 years $3,000 per year) and could sell this old machine for $35,000. Also assume Harris has a 21 percent marginal tax rate.

1.What would be the taxes associated with this sale?

2. If the old machine were sold for 25,000 what would be the taxes associated with this sale?

3. If the old machine were sold for 15,000. what would be the taxes associated with this sale?

4. If the old machine were sold for 12,000 what would be the taxes associated with this sale?