Question: A machine with a 10-year life is MACRS depreciated. The machine has a first cost of $40,000 with a $5000 salvage value . Its annual

A machine with a 10-year life is MACRS depreciated. The machine has a first cost of $40,000 with a $5000 salvage value. Its annual operating cost is $7000 per year, and d t for years 1, 2, and 3 is 10.00%, 18.00%, and 14.40%, respectively. The depreciation charge in year 3 is nearest to:
(a) $5800
(b) $7200
(c) $8500
(d) $9300

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