A Tractor Costing $80,000 Is Depreciated Using MACRS What Is the Depreciation Expense for Year 2?
A)$44,450
B)$35,560

Multiple Choice

A tractor costing $80,000 is depreciated using MACRS.The tractor qualifies as a 3-year property,and has a scrap value of $20,000.The depreciation rates are: $\begin{array} { | l | l | } \hline \text { Year 1: } & 33.33 \% \\\hline \text { Year 2: } & 44.45 \% \\\hline \text { Year 3: } & 14.81 \% \\\hline \text { Year 4: } & 7.41 \% \\\hline\end{array}$ What is the depreciation expense for year 2?

A) $44,450
B) $35,560
C) $26,670
D) $20,000