The HaveAWonderfulHoliday Company just purchased some equipment hat cost $150,000. The asset is in the MARCS 3-year class for depreciation. So the depreciation rates will be .33, .45, .15, and .07 for years 1 through 4, respectively.

However, it is expected that the asset will be sold in three years. The tax rate for the company is 35%. What is the after-tax salvage value at the end of YEAR 3 if the company receives:

a) $15,000 (at the end of year 3) for the asset?

b) $5,000 (at the end of year 3) for the asset?