QUESTION 15 Your new start-up construction company is looking at purchasing a new machine for a price of S180,000. Other costs include shipping costs of S4,000 and operational costs of $16,000. The machine is classified under a 5-year MACRS recovery period. What is the book value after year three? A. $38,400 B. $40,000 OC. $57,600 D. $160,000 QUESTION 16 Your construction firm purchases a new S55,000 machine that has an estimated salvage value of S5,000 at the end of the recovery period. Using the straight-line method with a recovery period of five years, what is the book value in year 4? A. $15,000 B. $25,000 OC. $35,000 D.$45,000