Bill Sharpe,owner of Sharper Knives Inc

Bill Sharpe,owner of Sharper Knives Inc.,is closing his business at the end of the current fiscal year.His sole asset,the knife-sharpening machine,is four years old.A depreciation table for the asset is shown below.Bill has agreed to sell the machine at the end of the year for $100,000.What is the impact on taxes from the sale of the machine? (Assume that Sharper Knives claimed a regular depreciation expense in the calculation of income taxes.) The tax rate is 35%.Round your answers to the nearest dollar.
Depreciation Table for Knife Sharpener

A) $7,665 additional taxes owing to IRS
B) $7,665 tax refund from IRS
C) $25,165 additional taxes owing to IRS
D) $25,165 tax refund from IRS
E) $27,335 additional taxes owing to IRS