5. Marshall-Miller & Company is considering the purchase of a new machine for $60,000, installed. The machine has a tax life of 5 years, and it can be depreciated according to the depreciation rates below. The firm expects to operate the machine for 5 years and then to sell it for $18,500. If the marginal tax rate is 40%, what will the after-tax salvage value be when the machine is sold at the end of Year 5?

	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6
MACRS %	20%	32%	19%	12%	11%	6%
Depreciation expense				7,200
Book value	48,000				3,600	$0

If we sell at the end of year 5 for $18,500 then determine if we have a gain or a loss and the appropriate tax consequence

Explain answer and how to solve step by step, financial calculations, and fill out the chart too. Thanks.