Keyser Petroleum Just Purchased Some Equipment at a Cost of $67,000.What

Multiple Choice

Keyser Petroleum just purchased some equipment at a cost of $67,000.What is the proper methodology for computing the depreciation expense for year 2 if the equipment is classified as 5-year property for MACRS?

A) $67,000 × (1 - 0.20) × 0.32
B) $67,000/(1 - 0.20 - 0.32)
C) $67,000 × (1 + 0.32)
D) $67,000 × (1 - 0.32)
E) $67,000 × 0.32