On May 1 of the prior year, Baker purchased equipment with a five-year useful life for a cost of $10,000. Baker adopted the MACRS depreciation system and did not utilize any special depreciation deductions. On March 1 of the current year, Baker sold the equipment. The MACRS depreciation schedule for five-year property is listed below:
First year – 20.00%
Second year – 32.00%
Third year – 19.20%
What amount of depreciation can Baker deduct in the current year?
a. $ 533
b. $1,600
c. $2,000
d. $3,200