ian Co. paid $720,000, in cash, for a piece of equipment three years ago.This equipment is 7-year MACRS property for tax purposes. The company no longer uses this equipment in its current operations and has received an offer of $475,000 from a firm that would like to purchase it. Tian Co. is debating whether to sell the equipment or to expand its operations such that the equipment can be used. However, Tian Co. is worried that the expansion will hurt their existing luxury product sales by about $81,000. Tax rate is 21%. c. If Tian Co. sells the equipment, how much tax does it have to pay on the sale?( Hint: you need to use the book value for year 3 you found in the previous question)

Tax is $ __________ (round to nearest dollar)