using the macrs rates from the following table, what is the book value of a $3,000 computer after 5…

using the macrs rates from the following table, what is the book value of a $3,000 computer after 5 years?\n| year | macrs rate |\n| ---- | ---- |\n| 1 | 20.0% |\n| 2 | 32.0% |\n| 3 | 19.2% |\n| 4 | 11.52% |\n| 5 | 11.52% |\n| 6 | 5.76% |\nbook value = $?\nround to the nearest cent.

using the macrs rates from the following table, what is the book value of a $3,000 computer after 5 years?\n| year | macrs rate |\n| ---- | ---- |\n| 1 | 20.0% |\n| 2 | 32.0% |\n| 3 | 19.2% |\n| 4 | 11.52% |\n| 5 | 11.52% |\n| 6 | 5.76% |\nbook value = $?\nround to the nearest cent.

Answer

Explanation:

Step1: Calculate depreciation amount for year 1

$3000\times20.0%=3000\times0.2 = 600$

Step2: Calculate book - value after year 1

$3000 - 600=2400$

Step3: Calculate depreciation amount for year 2

$2400\times32.0%=2400\times0.32 = 768$

Step4: Calculate book - value after year 2

$2400 - 768 = 1632$

Step5: Calculate depreciation amount for year 3

$1632\times19.2%=1632\times0.192\approx313.34$

Step6: Calculate book - value after year 3

$1632-313.34 = 1318.66$

Step7: Calculate depreciation amount for year 4

$1318.66\times11.52%=1318.66\times0.1152\approx151.91$

Step8: Calculate book - value after year 4

$1318.66-151.91 = 1166.75$

Step9: Calculate depreciation amount for year 5

$1166.75\times11.52%=1166.75\times0.1152\approx134.41$

Step10: Calculate book - value after year 5

$1166.75-134.41 = 1032.34$

Answer:

$1032.34$