1. Stone Corp invests in a new earthwork machine. Initial costs are $250,000. The equipment is expected to generate net returns of $55,000 each year in operation. The equipment is a 7-year property class life under MACRS. At the end of year 3, Stone sells the equipment for $140,000. Stone's marginal tax rate is 25%.

Fill out the following table for each year.

Year	BTCF	Net Depreciation/ Depreciation recapture	Taxable Income	Taxes	ATCF
0
1
2
3