You Own Some Equipment That You Purchased 4 Years Ago

Multiple Choice

You own some equipment that you purchased 4 years ago at a cost of $225,000.The equipment is 5-year property for MACRS.You are considering selling the equipment today for $87,000.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 $186,120.
C) The accumulated depreciation to date is $38,880.
D) The taxable amount on the sale is $38,880.
E) The aftertax salvage value is $70,158.