Purchase price for the equipment required in a project is $4.40 million. Import duty (to be paid by the supplier) for the equipment is $200,000 and installation cost is $400,000. The salvage value for the equipment after its economic life of 4 years is estimated to be $800,000. The equipment would be depreciated at 20 per cent per year under straight line method for the tax purpose. Tax rate is 30 per cent. Find the amount of tax on disposal.

Group of answer choices

$(240,000)

$(48,000)

$48,000

$240,000