Question: Harden Industries considers buying $3,650,000 equipment for producing rockets in Houston, TX. The equipment will have 7-year useful life and $2,000,000 salvage value. The company uses the MACRS depreciation method. The MACRS depreciation rates for 7-year class are: 14.29% in Year 1, 24.49% in Year 2, 17.49% in Year 3, 12.49% in Year 4, 8.93% in Years 5 and 7, 8.92% in Year 6, and 4.46% in Year 8. What is the book value of the equipment in year 2?