Edward's Manufactured Homes Purchased Some Machinery 2 Years Ago for $319,000

Edward's Manufactured Homes purchased some machinery 2 years ago for $319,000. These assets are classified as 5-year property for MACRS. The company is replacing this machinery today with newer machines that utilize the latest in technology. The old machines are being sold for $140,000 to a foreign firm for use in its production facility in South America. What is the aftertax salvage value from this sale if the tax rate is 35 percent?

A) $135,408
B) $140,000
C) $142,312
D) $144,592
E) $146,820