Suppose That a Project Has a Depreciable Investment of $600,000

Multiple Choice

Suppose that a project has a depreciable investment of $600,000 and falls under the following MACRS year 5 class depreciation schedule:
Year 1: 20 percent; year 2: 32 percent; year 3: 19.2 percent; year 4: 11.5 percent; year 5: 11.5 percent; and year 6: 5.8 percent.
Calculate depreciation for year 2.

A) $120,000
B) $192,000
C) $96,000
D) $115,200