Question 1 (15 points) An in-place machine with B = $180,000 was depreciated by MACRS over a 3-year period (MACRS rate for year 1 is 0.3333, year 2 is 0.4445, year 3 is 0.1481). The machine was sold for $90,000 at the end of year 2 when the company decided to import the item that required the use of the machine. In year 2, GI = $1.75 million and OE = $750.000. Determine the tax liability in year 2 if T. = 35%. Question 1 (15 points) An in-place machine with B = $180,000 was depreciated by MACRS over a 3-year period (MACRS rate for year 1 is 0.3333, year 2 is 0.4445, year 3 is 0.1481). The machine was sold for $90,000 at the end of year 2 when the company decided to import the item that required the use of the machine. In year 2, GI = $1.75 million and OE = $750.000. Determine the tax liability in year 2 if T. = 35%