Your company is contemplating the purchase of a large stamping machine. The machine will cost $199,000. With additional transportation and installation costs of $7,000 and $9,000, respectively, the cost basis for depreciation purposes is $215,000. Its MV at the end of five years is estimated as $40,000. The IRS has assured you that this machine will fall under a three year MACRS class life category. The justifications for this machine include $47,000 savings per year in labor and $29,000 savings per year in reduced materials. The before-tax MARR is 24% per year, and the effective income tax rate is 30%. Assume the stamping machine will be used for only three years, owing to the company's losing several government contracts. The MV at the end of year three is $53,000. What is the income tax owed at the end of year three owing to depreciation recapture (capital gain)? Click the icon to view the GDS Recovery Rates (r) for the 3-year property class. Choose the correct answer below. OA. The income tax owed at the end of year three is $11,121. B. The income tax owed at the end of year three is $37,069. C. The income tax owed at the end of year three is $24,000. D. The income tax owed at the end of year three is $21,148. OE. The income tax owed at the end of year three is $6,344.