The Jones Company has just completed the third year of a5-year diminishing value recovery period for a piece of equipment it originally purchased for $ 303 000. The depreciation rate is 40%.

a. What is the book value of theequipment?

b. If Jones sells the equipment today for $ 78 000 and its tax rate is 30 %, what is theafter-tax cash flow from sellingit?

a. The book value of the equipment after the third year is $

b. If Jones Company sells the equipment today for $ 78 000 and its tax rate is 30 %, the totalafter-tax proceeds from the sale will be $