Your company is contemplating the purchase of a large stamping machine. The machine will cost $161,000. With additional transportation and installation costs of 7,000and $8,000, respectively, the cost basis for depreciation purposes is $176,000. Its MV at the end of five years is estimated as $46,000. The IRS has assured you that this machine will fall under a three year MACRS class life category. The justifications for this machine include $37,000 savings per year in labor and $24,000 savings per year in reduced materials. The before-tax MARR is 19% per year, and the effective income tax rate is 35%. 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 $54,000. 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 (k) for the 3-year property class. Choose the correct answer below 0 A. The income tax owed at the end of year three is $9,774 O B. The income tax owed at the end of year three is $40,958. C. The income tax owed at the end of year three is $14,335 D. The income tax owed at the end of year three is $27,926. 0 E. The income tax owed at the end of year three is $30,000