Firm B uses MACRS depreciation which bought $75,000 worth of equipment last year that has a tax life of 4 years. The 5-year MACRS percentage rates, starting with Year 1, are: 20, 32, 19.2, 11.52, 11.52, and 5.76. The marginal tax rate of 34 percent. What is the tax salvage for firm B if it sells Its equipment for 10% of its initial cost at the end of its life?

OI. 5644

O II. -494

O II. 7994

O IV. 1856

O V. 8600

pls solve it within 15 min