A wood products company has decided to purchase new

logging equipment for $$100,000$ with a trade$-$in of its old

equipment. The old equipment has a BV of $$10,000$ at the

time of the trade$-$in$.$ The new equipment will be kept for

$10$ years before being sold. Its estimated SV at the time

is expected to be $$5,000.$

$7-72.$ Using the MACRS $($GDS recovery period$),$ if the

equipment is sold in year five, the BV at the end of year

five is equal to

$($a$)$ $$29,453($b$)$ $$24,541($c$)$ $$12,672$

$($d$)$ $$6,336$