Champion Toys just purchased some MACRS 5-year property at a cost of $230,000. The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. The book value of the asset as of the end of Year 2 can be calculated as:

Select one:

a. $230,000 (1 .20 .32). B. $230,000 ([1 - (.20 .32)].

b. $230,000 (1 - .20) (1 - .32).

c. $230,000 / (1 - .20 - .32).

d. $230,000 - ($230,000 .20 .32).