A Tractor Costing $20,000 Is Depreciated Using the Modified Accelerated

Multiple Choice

A tractor costing $20,000 is depreciated using the Modified Accelerated Cost Recovery System (MACRS) . The tractor belongs to 3-year property class and the depreciation rate for Year 1 is 33.33%, for Year 2 is 44.45%, for Year 3 is 14.81%, and for Year 4 is 7.41%. The depreciation expense for Year 3 is:

A) $3,453.
B) $2,962.
C) $4,987.
D) $1,876.