Below find the rates for 3 year and 5 year MACRS depreciation (half-year convention) Year 3 yr MACRS rate 5 yr MACRS rate 1 33.3% 20% 2 44.5% 32% 3 14.8% 19.9% 4 7.4% 11.5% 5 11.5% 6 5.8% A project under consideration by Khalia Corporation will require the purchase of new equipment at a cost of $1,000,000 with a 3 year economic life. Kalia's marginal tax rate is 25%. What is the difference in tax expense in the second year if depreciation is computed using MACRS rates rather than straight line? $28,000 $445,000 $112,000 $333,0