Troy Industries purchased a new machine 5 year(s) ago for $84,000.

It is being depreciated under MACRS with a 5-year recovery period using the schedule

Rounded Depreciation Percentages by Recovery Year Using MACRS for

First Four Property Classes              

Percentage by recovery year*          

Recovery year    3 years    5 years    7 years    10 years

1    33%   20%   14%   10%

2    45%   32%   25%   18%

3    15%   19%   18%   14%

4    7%   12%   12%   12%

5 12%   9%   9%

6 5%   9%   8%

7 9%   7%

8 4%   6%

9 6%

10 6%

11 4%

Totals   100%   100%   100%   100%

Assume 40% ordinary and capital gains tax rates.

a. What is the book value of the machine?

b. Calculate the firm's tax liability if it sold the machine for each of the following amounts:

$100,800?; $58,800?; $4,200?; and $2,900.

Round to the nearest dollar