Liberty Services is now at the end of the final year of a project. The equipment originally cost $22,500, of which 75% has been depreciated. The firm can sell the used equipment today for $6,000, and its tax rate is 40%.

What is the Book value of the Equipment? ["$4,896", "$5,625", "$5,889"]

What is the capital gain from the sale of the equipment? ["$285", "$375", "$325"]

How much tax will you pay on the sale of the equipment ["$150", "$175", "$187"]

What is the equipment's after-tax salvage value for use in a capital budgeting analysis? ["$4,875", "$5,850", "$5,255"]