Which one of the following statements is correct concerning MACRS?

		The depreciation percentages are applied to the depreciated book value.
		The depreciation percentages are applied to the net of the purchase cost minus the anticipated pre-tax salvage value.
		A fixed asset classified as 3-year property is depreciated over a 4-year period.
		The depreciation percentages are applied to the current market value.
		A fixed asset classified as 5-year property is depreciated to a zero book value over four years.