The J. Harris Corporation is considering selling one of its old assembly machines. The machine, purchased for $75,000 5 years ago, had an expected life of 15 years and an expected salvage value of zero. Assume Harris uses simplified straight-line depreciation (depreciation of $5,000 per year) and could sell this old machine for $70,000. Also assume Harris has a 33 percent marginal tax rate.

1. If the old machine were sold for $70,000, there would be ____ and ____ (tax payments or tax savings)

2. If the old machine were sold for $60,000, there would be ____ and ____ (tax payments or tax savings)

3. If the old machine were sold for $50,000, there would be ____ and ____ (tax payments or tax savings or both)

4. If the old machine were sold for $47,000, there would be ____ and ____ (tax payments or tax savings)