using the macrs rates from the following table, what is the book value of a $4,000 computer after 5…

using the macrs rates from the following table, what is the book value of a $4,000 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 $4,000 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

$4000\times20.0% = 4000\times0.2=800$ Book - value after year 1: $4000 - 800=3200$

Step2: Calculate depreciation amount for year 2

$3200\times32.0%=3200\times0.32 = 1024$ Book - value after year 2: $3200-1024 = 2176$

Step3: Calculate depreciation amount for year 3

$2176\times19.2%=2176\times0.192\approx417.79$ Book - value after year 3: $2176 - 417.79=1758.21$

Step4: Calculate depreciation amount for year 4

$1758.21\times11.52%=1758.21\times0.1152\approx202.54$ Book - value after year 4: $1758.21-202.54 = 1555.67$

Step5: Calculate depreciation amount for year 5

$1555.67\times11.52%=1555.67\times0.1152\approx179.11$ Book - value after year 5: $1555.67-179.11 = 1376.56$

Answer:

$1376.56$