A care facility bought a MRI for 1 million and spent $150,000 for shipping/installation. Both expenses together are depreciable under the MACRS 5-yaer schdule. What is the depreciable basis? What will the depreciation expense be the 2nd year?

Year_________ Depreciation rate for recovery period

1 ___________20%

2___________32%

3 __________19.20%

4 __________11.52%

5 __________11.52%

Choices

A. 132,480

B. 230,000

C. 192,000

D 320,000

E 368,000