Company J bought a piece of equipment for $200,000. This equipment has a useful life of 10 years and a salvage value of $40,000. The company has been using the seven-year MACRS property class to...

Company J bought a piece of equipment for $200,000. This equipment has a useful life of 10 years and a salvage value of $40,000. The company has been using the seven-year MACRS property class to depreciate the asset for tax pur poses. At the end of year 4, the company sold the equipment for $120,000. The tax rate is 40%.

What are the net proceeds (after tax) from the sale of the equipment?