The J. Harris Corporation is considering selling one of its old assembly machines. The machine, purchased for

Question:

The J. Harris is considering selling one of its old assembly machines. The machine, purchased for $ 30,000 5 years ago, had an expected life of 10 years and an expected of zero. Assume Harris uses simplified straight- line depreciation (depreciation of $ 3,000 per year) and could sell this old machine for $ 35,000. Also assume Harris has a 34 percent marginal tax rate.
a. What would be the taxes associated with this sale?
b. If the old machine were sold for $ 25,000, what would be the taxes associated with this sale?
c. If the old machine were sold for $ 15,000, what would be the taxes associated with this sale?
d. If the old machine were sold for $ 12,000, what would be the taxes associated with this sale?
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