You own some equipment that you purchased 4 years ago at a cost of $216,000. The equipment is 5-year property for MACRS. You are considering selling the equipment today for $75,500. Which one of the following statements is correct if your tax rate is 35 percent? 
A) The tax due on the sale is $26,425.
B) The book value today is $178,675.20.
C) The accumulated depreciation to date is $37,324.80.
D) The taxable amount on the sale is $37,324.80.
E) The aftertax salvage value is $62,138.68.
Correct Answer:
Verified
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