using the macrs rates from the following table, what is the book value of a $4,000 computer after 3…

using the macrs rates from the following table, what is the book value of a $4,000 computer after 3 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 3 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

The depreciation amount for year 1 is $4000\times 20.0%=4000\times0.2 = 800$. So the book - value after year 1 is $4000 - 800=3200$.

Step2: Calculate depreciation amount for year 2

The depreciation amount for year 2 is $3200\times32.0%=3200\times0.32 = 1024$. So the book - value after year 2 is $3200 - 1024 = 2176$.

Step3: Calculate depreciation amount for year 3

The depreciation amount for year 3 is $2176\times19.2%=2176\times0.192\approx417.79$. So the book - value after year 3 is $2176-417.79 = 1758.21$.

Answer:

$1758.21$