Year 3-year 5-year 7-year

1 33.33% 20.00% 14.29%

2 44.44 32.00 24.49

3 14.82 19.20 17.49

4 7.41 11.52 12.49

5 11.52 8.93

6 5.76 8.93

7 8.93

8 4.45

_____ 11. Your company has just purchased a new distillation unit for $160,000 to be used in R & D. Such equipment has a 3-year MACRS classification. What is the book value of the distillation unit at the end of year 2?

a. $18,892

b. $35,568

c. $39,998

d. $46,664

e. $88,896