Pete's Garage Just Purchased Some Equipment at a Cost of $650,000.What

Pete's Garage just purchased some equipment at a cost of $650,000.What is the proper methodology for computing the depreciation expense for Year 3 if the equipment is classified as 5-year property for MACRS? The MACRS rates are 20 percent,32 percent,19.2 percent,11.52 percent,11.52 percent,and 5.76 percent for Years 1 to 6,respectively.Ignore bonus depreciation.

A) $650,000(1 − .20) (1 − .32) (1 − .192)
B) $650,000(1 − .20) (1 − .32)
C) $650,000(1 − .20) (1 − .32) (.192)
D) $650,000(1 − .192)
E) $650,000(.192)