Question 6: ABC company purchased a machine costing 0.001 X in year 0. The Machine is classified as a seven-year MACRS recovery property. If the machine is to be sold after five years, compute the amounts of gains (losses) for the following three salvage values, assuming that both capital gains and ordinary incomes are taxed at 35% (a) $15,000 (b) $125,460 (c) $200,000