Mike Mulligan Excavation Inc. has one Caterpillar 345DL Hydraulic Excavator. It was purchased at the beginning of 20X4 for $300,000. The excavator is classified as 10-year property. (MACRS depreciation rates of 10% and 18% in the first two years.) Assume a corporate tax rate of 35%. What is the tax on sale if Mike sells the 345DL at the end of 20X5 for $225,000? Round to the nearest dollar. Taxes owing $1 Check Answer