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depreciation values

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A Corporation is selling an existing asset for $1,700. The asset, when purchased, cost $10,000, was being depreciated under MACRS using a five-year recovery period, and has been depreciated for four full years. If the assumed tax rate is 40 percent on the ordinary income and capital gains, the tax effect of this transaction is _________

$0 transaction, $840 tax liability, $3,160 tax liability, or $3,160 tax benefit

I believe this is a benefit of $3,160 -- please advise answer & show why - thanks much!

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The expert examines depreciation values tax effects.

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The depreciation for 4 full years = 20%+32%+19.2%+11.52%=82.72%
The ...

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