PART I Farris Industrial purchased a machine 5 years ago at a cost of $229,380. The machine is being depreciated using the straight-line method over 8 years. The tax rate is 35 percent and the discount rate is 16 percent. If the machine is sold today for $74,500, what will be the after-tax salvage value?

A. $74,500.00

B. $67,625.09

C. $78,531.13

D. $37,389.69

E. $115,454.05

PART II

Sun Lee's Furniture just purchased $387,269 of fixed assets classified as 5-year property for MACRS. The MACRS table values are 0.2000, 0.3200, 0.1920, 0.1152, 0.1152, and 0.0576 for Years 1 to 6, respectively. What is the amount of the depreciation expense for the third year?

A. $40,449.47

B. $54,019.09

C. $123,926.08

D. $102,004.20

E. $74,355.65

PART III

Lefty's just purchased some equipment that is classified as 7-year property for MACRS. The equipment cost $123,940. The MACRS table values are 0.1429, 0.2449, 0.1749, 0.1249, and 0.0893, for Years 1 to 5, respectively. What will the book value of this equipment be at the end of 4 years?

A. $38,718.86

B. $36,036.68

C. $47,040.00

D. $44,566.04

E. $48,443.24