Sell an asset for $1,000 that has a book value of $1,200. Buy $2,000 of fixed assets and add $300. of Net Working Capital. The tax rate is 30% The ICO is:

	A.	$1,240.
	B.	$1,360.
	C.	$640.
	D.	$760.

Under MACRS depreciation occurs:

	A.	Over the depreciable life minus one year
	B.	Over the depreciable life
	C.	All in the first year of the depreciable life.
	D.	Over the depreciable life plus one year.