using the macrs rates from the following table, what is the book value of a $3,500 computer after 5…

using the macrs rates from the following table, what is the book value of a $3,500 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 $3,500 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 total depreciation rate

Sum up the MACRS rates for 5 years. $20.0%+32.0% + 19.2%+11.52%+11.52%=94.24%$

Step2: Calculate remaining value rate

The remaining - value rate is $100% - 94.24% = 5.76%$.

Step3: Calculate book - value

Multiply the initial cost by the remaining - value rate. $3500\times5.76%=3500\times0.0576 = 201.60$

Answer:

$201.60$