Data table

$($Click on the icon here in order to copy the contents of the data table below into a spreadsheet.$)$

Rounded Depreciation Percentages by Recovery Year Using MACRS for

First Four Property Classes

$*$These percentages have been rounded to the nearest whole percent to simplify calculations while

retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual

unrounded percentages or directly apply double$-$declining balance $(200\%)$ depreciation using the half$-$year

convention.Book value and taxes on sale of assets Troy Industries purchased a new machine $2$ year$($s$)$ ago for $$80,000.$ 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: $$96,000$;$$56,000$;$$38,400$; and $$26,900.$

a$.$ The remaining book value is $

$($Round to the nearest dollar.$)$