Morris Motors just purchased some MACRS 5-year property at a cost of $216,000. Which one of the following will correctly give you the book value of this equipment at the end of year 2?
A. $216,000/(1 + 0.20 + 0.32.
B. $216,000 × (1 - 0.20 - 0.32.
C. $216,000 × (0.20 + 0.32.
D. [$216,000 × (1 - 0.20.] × (1 - 0.32.
E. $216,000/[(1 + 0.20.(1 + 0.32.]