A firm has invested $45,000 in machinery with a 5-year useful life, and an expected salvage value of $8,000 if kept for the full 5 years. The machinery has a market value of $15,000 when sold in its third year. The uniform annual benefits from the machinery are $18,000. The company has a combined 45% income tax rate. The machinery is considered a 5-year MACRS property. Assume the machinery is sold in the third year. What is the depreciation in year three? NOTE: This MACRS property class is different than question 2. A. $3,332 B. $4,320 C. $8,640 D. $14,400