Suppose the Tucson Tuxedo Company Has Equipment That Originally Cost

Suppose the Tucson Tuxedo Company has equipment that originally cost $1.2 million, and is classified as a 5-year MACRS asset, with the MACRS rates:

If the Tucson Tuxedo Company sells the equipment at the end of five years for $0.2 million, the capital gain and recapture of depreciation, respectively, are closest to:

A) $0; $1,130,880.
B) $0; $1,200,000.
C) $69,120; $1,130,880.
D) $69,120; $1,200,000.