Two years ago, ABC Co. purchased a piece of equipment for $500,000, and the equipment falls in the MACRS three-year property class. What is the book value of the equipment at the end of year two, assuming the following depreciation rates?

Year 1: 33%

Year 2: 45%

Year 3: 15%

Year 4: 7%

A. $35,000

B. $465,000

C. 0

D. $110,000