Three years ago, your business bought a machine for $50,000. The machine has a 5-year MACRS class life. Three years of depreciation have been claimed. Today, the machine could be sold for $40,000. Your companys tax rate is 34%. The total tax liability resulting from the sale of the machine would be

A. $5,440 tax owed

B. $8,670 tax owed

C. $5,440 tax saved

D. $8,670 tax saved

E. None of the above are correct.