Morris Motors Just Purchased Some MACRS 5-Year Property at a Cost

Multiple Choice

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) ]