New equipment for manufacture of metal products with a cost basis of $600,000 is being depreciated using the MACRS-ADS. The asset will be sold in year 3. Click the icon to view the partial listing of depreciable assets used in business. Calculate the depreciation for the asset in year 1. O A. $85,714 O B. $25,000 O C. $50,000 OD. $42,857 O E. $100,000 What will be the book value of the asset at the time sale in year 3? A. $475,000 O B. $428,571 O C. $385,714 O D. $450,000 O E. $500,000 i More Info - X MACRS Class Lives and Recovery Periods Recovery Periods GDS ADS Class Life Asset Class 00.11 00.12 00.22 00.23 00.241 00.242 00.26 WOUL UT UT UT 01.1 Descriptions of Assets Office furniture and equipment Information systems, including computers Automobiles, taxis Buses Light general purpose trucks Heavy general purpose trucks Tractor units for use over the road Agriculture Mining Production of petroleum and natural gas Petroleum refining Construction Manufacture of carpets Manufacture of wood products and furniture Manufacture of chemicals and allied products Manufacture of rubber products Manufacture of cement Manufacture of fabricated metal products Manufacture of electronic components, products, and systems Manufacture of motor vehicles Manufacture of aerospace products Telephone central office equipment Electric utility steam production plant Gas utility distribution facilities Recreation 10.0 13.2 13.3 15.0 22.3 24.4 28.0 30.1 322 34.0 36.0 37.11 37.2 48.12 49.13 49.21 79.0 9.5 uvon o V Print Done