Good Motors just purchased some MACRS 5-year property at a cost of $250,000. The MACRS rates are .2, .32, and .192 for years 1 to 3, respectively. Which one of the following will correctly give you the book value of this equipment at the end of year 2?

Select one:

a.

$250,000 / (1 + .2 + .32)

b.

$250,000 (.20 + .32)

c.

[$250,000 (1 - .20)] (1 - .32)

d.

$250,000 (1 - .2 - .32)

e.

$250,000 / [(1 + .20)(1 + .32)]