Smith company Purchased an asset two years ago for $$200,000.$ During the two year period Smith

has taken depreciation for tax purposes of $$70,000.$ At this point Smith plans to sell the asset.

Assuming Smith sells the machine for $$300,000$ please compute the following:

Part $1$ What is the book value of the machine for tax purposes?

Part $2$ What is the taxable gain on the sale of this machine?

Part $3$ Assuming Smith is in a $30\%$ tax bracket, how much tax would

have to be paid as a result of the sale?