Vendome Company is considering the purchase of the following computer equipment, which is considered 5-year property for tax purposes: 
Vendome plans to use MACRS and keep the production equipment for seven years. (Round amounts to dollars.)
The tax savings from depreciation in Year 3 would be
A) $38,400.
B) $28,570.
C) $71,428.
D) $96,000.
Correct Answer:
Verified
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