You Own Some Equipment Which You Purchased Three Years Ago

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%? $$\begin{array}{l}\text { MACRS 5-year property }\\\begin{array} { c c } \underline{\text { Year }} & \underline{\text { Rate} } \\ 1 & 20.00 \% \\2 & 32.00 \% \\3 & 19.20 \% \\4 & 11.52 \% \\5 & 11.52 \% \\6 & 5.76 \%\end{array}\end{array}$$

A) The tax due on the sale is $14,830.80.
B) The book value today is $8,478.
C) The book value today is $64,320.
D) The taxable amount on the sale is $38,880.
E) You will receive a tax refund of $13,219.20 as a result of this sale.