The Parkview Hospital is considering the purchase of a new autoclave. This equipment will cost $150,000. This

Question:

The Parkview Hospital is considering the purchase of a new autoclave. This equipment will cost $150,000. This asset will be depreciated using an MACRS (GDS) recovery period of three years. If the autoclave is sold during the third year of ownership, the allowable depreciation charge for the third year is

(a) $25,000

(b) $33,338

(d) $11,108

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