using the macrs rates from the following table, what is the book value of a $2,500 computer after 3…

using the macrs rates from the following table, what is the book value of a $2,500 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 $2,500 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 for year 1

$2500\times20.0% = 500$

Step2: Calculate depreciation for year 2

$(2500 - 500)\times32.0%=640$

Step3: Calculate depreciation for year 3

$(2500 - 500 - 640)\times19.2% = 268.8$

Step4: Calculate book value after 3 years

$2500-(500 + 640+268.8)=1091.2$

Answer:

$1091.20$