A numerically controlled milling machine was purchased for $95,000 four years ago. The estimated salvage value was $15,000 after 15 years. What is the machines book value after 5 years of depreciation? If the machine is sold for $20,000 early in Year 7, how much gain on sale or recaptured depreciation is there? Assume

NOTE: Use a net tax rate of 22.98% for all problems (disregard the rate given in the problems)

(a) 7-year MACRS depreciation

(b) Straight-line depreciation