What depreciation deduction would be allowed for HomeNet’s $7.5 million lab equipment using the MACRS method, assuming the lab equipment is designated to have a five-year recovery period? For clarity, assume that the lab equipment is purchased and put into use in December of year 0, allowing the partial year depreciation in year 0. 

This means that year 0 is the first year of the MACRS schedule (year 1) in the appendix. (See the appendix to this chapter for information on MACRS depreciation schedules.)