You purchase an equipment for $500000, which will have depreciated book value of $150000, 5 yrs form now. You believe that you can sell the equipment for $130000 when you are done with it in 5 yrs. The companies marginal tax rate is 40%.What is the tax effect from the sale of the asset?

A- Tax savings of $8000

B- Tax savings of $6000

C- Tax due of $6000

D- Tax due of $8000

E- Tax savings of $7000

None of the above_____________( fill in the blank)

Please help guide me through this question.