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Assume that today is December 31, 2015. Mike Mulligan Excavation Inc. has one Caterpillar 345DL...

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Accounting

Assume that today is December 31, 2015. Mike Mulligan Excavation Inc. has one Caterpillar 345DL Hydraulic Excavator. It was purchased at the beginning of 2014 for $280,000. The excavator is classified as a 10-year property. (see the MACRS depreciation rates on PolyLearn, or google it.)
What would the book value of that excavator be at the end of 2015. [To be clear, this would be two years of depreciation.]
Round to the nearest dollar.
How much tax would be due on the sale of the excavator described above if the tax rate was 35% and the equipment was resold for $225,000?
Round to the nearest dollar.

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