Reema Remodels just purchased some equipment at a cost of $$650,000.$ What is the proper methodology for computing the depreciation expense for Year $3$ if the equipment is classified as $5-$year property for MACRS? The MACRS rates are $20$ percent, $32$ percent, $19\mathrm{.}2$ percent, $11\mathrm{.}52$ percent, $11\mathrm{.}52$ percent, and $5\mathrm{.}76$ percent for Years $1$ to $6,$ respectively. Ignore bonus depreciation.

Multiple Choice

$$650,000(1\mathrm{.}20)(1\mathrm{.}32)$

$$650,000(1\mathrm{.}192)$

$$650,000(\mathrm{.}192)$

$$650,000(1\mathrm{.}20)(1\mathrm{.}32)(1\mathrm{.}192)$

$$650,000(1\mathrm{.}20)(1\mathrm{.}32)(\mathrm{.}192)$