1. Krakow Inc., a calendar year corporation, purchased $555,000 of equipment on March 9. This was Krakows only purchase of depreciable property for the year. If the equipment has a 7 year recovery period, compute Krakows first and second year MACRS depreciation. (Disregard the Section 179 deduction and Bonus depreciation in making your calculation.)

   	a.	First year $79,310, second year $116,496
   	b.	First year $79,310, second year $135,920
   	c.	First year $39,655, second year $135,920
   	d.	First year $111,000, second year $177,600