What will the depreciation expense be in the third year

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Problem 1: Jackson Family Care recently purchased a new MRI for $600,000 and spent $90,000 for shipping and installation. Both expenses together are depreciable under the MACRS 5-year schedule. Given the depreciable basis, what will the depreciation expense be in the third year?

Year       Depreciation rate for recovery period
1                           20.00%
2                          32.00%
3                          19.20%
4                          11.52%
5                          11.52%

Group of answer choices

Option 1: $132,480

Option 2: $192,000

Option 3: $230,000

Option 4: $320,000

Option 5: $368,000

Reference no: EM133007228

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