Depreciable Value	$601,000.00
Depreciable life	7	year MACRS
Year	1	2	3	4	5	6	7	8
Depreciation Rates	14.290%	24.490%	17.490%	12.490%	8.930%	8.920%	8.930%	4.460%
Depreciation	$85,882.90	$147,184.90	$105,114.90	$75,064.90	$53,669.30	$53,609.20	$53,669.30	$26,804.60
Cumulative Depreciation	$85,882.90	$233,067.80	$338,182.70	$413,247.60	$466,916.90	$520,526.10	$574,195.40	$601,000.00
Book Value	$515,117.10	$367,932.20	$262,817.30	$187,752.40	$134,083.10	$80,473.90	$26,804.60	$0.00

1. If ABC Company decides to sell the assets for $100,000 at the end of year nine (9), how much taxes would ABC Company have to pay as a result of this transaction? Assumptions:
   • ABC Company breaks-even that year (realizing a profit of $0) before the sale (so the tax paid by ABC will be a result of the sale of this asset only)
   • Capital Gains Tax Rate is 20%
   • Ordinary Tax Rate is 30%

• The table above is the 7 year macrs I used to determine the book value of year year.