Morris Motors just purchased some MACRS 5-year property at a cost of $216,000.Which one of the following will correctly give you the book value of this equipment at the end of year 2? ![Morris Motors just purchased some MACRS 5-year property at a cost of $216,000.Which one of the following will correctly give you the book value of this equipment at the end of year 2? A) $216,000/(1 + 0.20 + 0.32) B) $216,000 × (1 - 0.20 - 0.32) C) $216,000 × (0.20 + 0.32) D) [$216,000 × (1 - 0.20) ] × (1 - 0.32) E) $216,000/[(1 + 0.20) (1 + 0.32) ]](https://d2lvgg3v3hfg70.cloudfront.net/TB5617/11ea8a5b_2e28_4740_9a87_d1946437f925_TB5617_00_TB5617_00.jpg)
A) $216,000/(1 + 0.20 + 0.32)
B) $216,000 × (1 - 0.20 - 0.32)
C) $216,000 × (0.20 + 0.32)
D) [$216,000 × (1 - 0.20) ] × (1 - 0.32)
E) $216,000/[(1 + 0.20) (1 + 0.32) ]
Correct Answer:
Verified
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