Problem:
A project requires $360,000 of equipment that is classified as seven-year property.
Required:
What is the depreciation expense in year 3 given the following MACRS depreciation allowances, starting with year 1: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?
- $38,033
- $41,267
- $51,444
- $62,964
- $88,164
Note: Please show how you came up with the solution.