using the macrs rates from the following table, what is the book value of a $3,500 computer after 4…

using the macrs rates from the following table, what is the book value of a $3,500 computer after 4 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 4 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

Depreciation in year 1 = $3500\times20.0%=3500\times0.2 = 700$ Book - value after year 1 = $3500 - 700=2800$

Step2: Calculate depreciation amount for year 2

Depreciation in year 2 = $2800\times32.0%=2800\times0.32 = 896$ Book - value after year 2 = $2800 - 896 = 1904$

Step3: Calculate depreciation amount for year 3

Depreciation in year 3 = $1904\times19.2%=1904\times0.192\approx365.57$ Book - value after year 3 = $1904 - 365.57 = 1538.43$

Step4: Calculate depreciation amount for year 4

Depreciation in year 4 = $1538.43\times11.52%=1538.43\times0.1152\approx177.22$ Book - value after year 4 = $1538.43-177.22 = 1361.21$

Answer:

$1361.21$