You own some equipment which you purchased three years ago at a cost of $135,000. The equipment is 5-year property for MACRS. You are considering selling the equipment today for $82,500. Which one of the following statements is correct if your tax rate is 34%?

MACRS 5-year property

Year Rate

1 20.00%

2 32.00%

3 19.20%

4 11.52%

5 11.52%

6 5.76%

		The tax due on the sale is $14,830.80
		The book value today is $64,320.
		The book value today is $8,478.
		The taxable amount on the sale is $38,880.