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

using the macrs rates from the following table, what is the book value of a $4,500 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 $4,500 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 the accumulated depreciation rate

The accumulated depreciation rate after 5 years is the sum of the MACRS rates for years 1 - 5. $20.0%+32.0% + 19.2%+11.52%+11.52%=94.24%$

Step2: Calculate the remaining book - value rate

The remaining book - value rate is $100%$ minus the accumulated depreciation rate. $100%-94.24% = 5.76%$

Step3: Calculate the book value

The book value is the original cost times the remaining book - value rate. $4500\times0.0576 = 259.20$

Answer:

$259.20$