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Jason farm Inc. bought a capital asset for $500,000 and depreciated it on a five-year...

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Accounting

Jason farm Inc. bought a capital asset for $500,000 and depreciated it on a five-year MACRS schedule. At the end of year four, the asset was sold for $50,000. If the tax rate is 21%, what was the tax implication (expense or shield/credit) for the salvage?

**Please show excel work with excel equations**

What is the tax implication AKA the salvage price after tax, Choices are:

(o) $30,000 Tax shield/credit

(o) $7,644 tax credit

(o) $18,490.22 tax credit

(o) $7,644 Tax Expense

(o) $30,000 Tax Expense

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