Troy Industries purchased a new machine 2 year(s) ago for $78,000.

It is being depreciated under MACRS with a 5-year recovery period using the schedule

Assume 21% ordinary and capital gains tax rates.

a. What is the book value of the machine?

b. Calculate the firm's tax liability if it sold the machine for each of the following amounts:

$93,600;

$54,600;

$37,440;

and

$26,200.

Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes -I hese percentages have been rounded to the nearest whole percent to smplity calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance \(200 depreciation using the half-year convention