An oil refinery has decided to purchase some new drilling equipment for $550,000. The equipment will be kept for 10 years before being sold. The estimated SV for depreciation purposes is to be $25,000. Use this information to solve, If MACRS depreciation is used, the recovery period of the equipment using the GDS guidelines is (a) 3 years (b) 5 years (c) 7 years (d) 10 years.

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