On July 1, 20X6, your calendar year firm purchases for $10,000 a lathe with a 10-year life and a $1,000 salvage value. If your firm does not take a Section 179, how much depreciation will it claim for 20X7 (the following year) based on the partial MACRS table below?
Year 3-Year 5-Year 7-Year
1 33.33% 20.00% 14.29%
2 44.45% 32.00% 24.49%
3 14.81% 19.20% 17.49%
4 7.41% 11.52% 12.49%
5 11.52% 8.93%
6 5.76% 8.92%
7 8.93%
8 4.46%
A. $3,200
B. $2,880
C. $2,449
D. $4,445
