1. Hotshop purchased some machinery in May 2016 for $337,600. These assets are classified as five year property for MACRS. The MACRS rate are .2, .32, .192, .1152, .1152, .0576 for years 1 to 6, respectively. In 2018, the company replaced this equipment with newer models at a cost of $528,000. the old equipment is being sold for $120,000. what is the after tax salvage value from this sale if the tax rate is 35 percent?