Answer: $16,800 tax payment.
Explanation:
Annual depreciation on machine = [tex]\frac{1,800,000}{15}[/tex]
= $120,000
Accumulated Depreciation in 13 years;
= 120,000*13
= $1,560,000
Book Value at 13 years
= 1,800,000 - 1,560,000
= $240,000
Company sold it at a higher price than its book value so there will be a capital gain of;
= 320,000 - 240,000
= $80,000
Tax is charged on the marginal gain;
= 80,000 * 21%
= $16,800
