The Widget Company bought a machine for $2 million at the beginning of 1997. The machine was depreciated as a 5-year MACRS asset. The machine was sold for $400,000 in 2003. The tax rate on ordinary income is 40% and the tax rate of capital gains is 30%. Which of the following is incorrect? The gain on the sale of the asset is taxed at 30%. The book value of the asset is $0 at the time of its sale. The cash flow associated with the sale of this asset is $240,000. The accumulated depreciation on this asset, for tax purposes, is $2 million