Please explain, thanks!

Russell's is considering purchasing $697,400 of equipment for a four-year project. The equipment falls in the five-year MACRS class with annual percentages of .2,32,.192,.1152,.1152, and . 0576 for Years 1 to 6 , respectively. At the end of the project the equipment can be sold for an estimated $135,000. The tax rate is 23 percent. What is the amount of the aftertax salvage value of the equipment? $140,071.25$131,667.47$118,804.30$138,666.67