What is the book value of $3000 computer after 4 years ### Book Value Calculation Using MACRS Rates#### Question:Using the MACRS rates from the following table, what is the book value of a $3,000 computer after 4 years?#### MACRS Depreciation Rates Table:| Year | MACRS Rate ||:----:|:----------:|| 1 | 20.0% || 2 | 32.0% || 3 | 19.2% || 4 | 11.52% || 5 | 11.52% |#### Solution:1. Calculate the percentage of the original value that is depreciated each year and find the remaining value.2. For Year 1: - Depreciated Value: $3,000 * 20.0% = $600 - Remaining Value: $3,000 - $600 = $2,400 3. For Year 2: - Depreciated Value: $2,400 * 32.0% = $768 - Remaining Value: $2,400 - $768 = $1,6324. For Year 3: - Depreciated Value: $1,632 * 19.2% = $313.34 - Remaining Value: $1,632 - $313.34 = $1,318.665. For Year 4: - Depreciated Value: $1,318.66 * 11.52% = $151.84 - Remaining Value: $1,318.66 - $151.84 = $1,166.82#### Book Value:**The book value of the $3,000 computer after 4 years is approximately $1,166.82** (rounded to the nearest hundredth).Please enter this calculated book value:```Book value = [$1,166.82]```#### Note:- Round your final answer to the nearest hundredth as instructed.- Ensure correct application of each year's depreciation rate sequentially to find the cumulative remaining value.

Modified Accelerated Cost Recovery System (MACRS) is a depreciation system used in the unites states…

Answered: Using the MACRS rates from the…

Business

Accounting

Using the MACRS rates from the following table, what is the book value of a $3,000 computer after 4 years?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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