using the macrs rates from the following table, what is the book value of a $4,500 computer after 5 years…

using the macrs rates from the following table, what is the book value of a $4,500 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 $4,500 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 depreciation amount for year 1

$4500\times20.0% = 4500\times0.2=900$

Step2: Calculate book - value after year 1

$4500 - 900=3600$

Step3: Calculate depreciation amount for year 2

$3600\times32.0%=3600\times0.32 = 1152$

Step4: Calculate book - value after year 2

$3600-1152 = 2448$

Step5: Calculate depreciation amount for year 3

$2448\times19.2%=2448\times0.192\approx469.02$

Step6: Calculate book - value after year 3

$2448 - 469.02=1978.98$

Step7: Calculate depreciation amount for year 4

$1978.98\times11.52%=1978.98\times0.1152\approx228.98$

Step8: Calculate book - value after year 4

$1978.98-228.98 = 1750$

Step9: Calculate depreciation amount for year 5

$1750\times11.52%=1750\times0.1152 = 201.6$

Step10: Calculate book - value after year 5

$1750-201.6 = 1548.4$

Answer:

$1548.40$