Suppose That a Project Has a Depreciable Investment of $600,000

question 38

Multiple Choice

Suppose that a project has a depreciable investment of $600,000 and falls under the following MACRS year 5 class depreciation schedule: year 1: 20 percent; year 2: 32 percent; year 3: 19.2 percent; year 4: 11.5 percent; year 5: 11.5 percent; and year 6: 5.8 percent.
Calculate depreciation for year 2.

• A)$120,000
• B)$192,000
• C)$96,000
• D)$115,200