Four years ago Sierra Instruments of Monterey California spent $200,000 for equipment to manufacture standard gas flow calibrators. The equipment was depreciated by MACRS using a 3-year recovery period. The gross income for year 4 was $100,000, with operating expenses of $ SO,000. Use an effective tax rate of 40% to determine the CFAT in year 4 if the asset was (a) discarded with no salvage value in year 4 and (b) sold for $20,000 at the end of year 4 (neglect any taxes that may be incurred on the sale of the equipment). The MACRS depreciation rate for year 4 is 7.41%