A Poultry Farmer Is Interested in Purchasing an Industrial Egg

Multiple Choice

A poultry farmer is interested in purchasing an industrial egg tester that can measure weight,albumin height,yolk color,and Haugh units all at the touch of a button.The unit will cost $6900 and is expected to last 10 years at which point it can be sold for $1000 to a farmer in a less stringently controlled egg market.What is the annual depreciation for year 4 under the MACRS method? A copy of Table J.3 is below.
Table J.3
$$\begin{array} { c } { \text { Class of Investment } } \\\begin{array} { | c | c | c | c | c | } \hline \text { Year } & \text { 3-Year } & \text { 5-Year } & \text { 7-Year } & \text { 10-Year } \\\hline 1 & 33.33 & 20.00 & 14.29 & 10.00 \\\hline 2 & 44.45 & 32.00 & 24.49 & 18.00 \\\hline 3 & 14.81 & 19.20 & 17.49 & 14.40 \\\hline 4 & 7.41 & 11.52 & 12.49 & 11.52 \\\hline 5 & & 11.52 & 8.93 & 9.22 \\\hline 6 & & 5.76 & 8.93 & 7.37 \\\hline 7 & & & 8.93 & 6.55 \\\hline 8 & & & 4.45 & 6.55 \\\hline 9 & & & & 6.55 \\\hline 10 & & & & 6.55 \\\hline 11 & & & & 3.29 \\\hline\end{array}\end{array}$$

A) $862
B) $795
C) $737
D) $680