MACRS (Modified Accelerated Cost Recovery System) Percentage by recovery year Recovery year 3 years 5 years 7 years 1 33% 20% 14% 2 45% 32% 25% 3 15% 19% 18% 4 7% 12% 129 Dogoro 5 12% 6 5% 9% 7 9% 8 4% Under MACRS, an asset which originally cost $20,000 is being depreciated using a 5-year recovery period. What is the depreciation expense in year 3? (Hint: This question is related to Chapter 4 PowerPoint Slides #14 and #15 or Table 4.2 on textbook page 120.] a $2,400 $3,800 b Son