Question: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 14.29% 24.49% 17.49% 12.49% 8.93% 8.92% 8.93% 4.46% MACRS

Year 0 Year 1 Year 2 Year 3 Year 4 Year

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 14.29% 24.49% 17.49% 12.49% 8.93% 8.92% 8.93% 4.46% MACRS Depreciation Rate Massive Amusements, an owner of theme parks, invests $69 million to build a roller coaster. This can be depreciated using the MACRS schedule shown above. How much less is the depreciation tax shield for year 4 under MACRS depreciation than under 7-year, straight-line depreciation, if the tax rate is 40%? A. $1,478,176 B. $1,182,541 C. $2,660,717 D. $7,390,880

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