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

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

Answer

Explanation:

Step1: Calculate total depreciation rate

First, sum up the MACRS - rates for the first 5 years. $20.0%+32.0% + 19.2%+11.52%+11.52%=94.24%$

Step2: Calculate remaining value percentage

The remaining value percentage is $100% - 94.24%=5.76%$

Step3: Calculate book - value

Multiply the initial value of the computer by the remaining value percentage. $3000\times5.76%=3000\times0.0576 = 172.80$

Answer:

$172.80$