1. Consider the deprecation schedule attached at the end of the test. Exactly 3 years ago, you purchased a machine for $500,000 that has since been depreciated as a 5-year MACRS class. Today, you sold it for $300,000. Given this, and a 21% tax rate what is the tax bill?
   1. $63,000
   2. $32,760
   3. $11,760
   4. $35,820