Book value of a $3000 computer after 5 years **Using MACRS Rates to Determine the Book Value of a Computer**### Question:Using the MACRS (Modified Accelerated Cost Recovery System) rates from the following table, what is the book value of a $3,000 computer after 5 years?### MACRS Depreciation Rates:| Year | MACRS Rate ||------|------------|| 1 | 20.0% || 2 | 32.0% || 3 | 19.2% || 4 | 11.52% || 5 | 11.52% |### Calculation:To calculate the book value, we subtract the accumulated depreciation from the initial purchase price of the computer. The depreciation for each year is calculated using the given MACRS rates.**Year 1**: Depreciation = $3,000 * 20.0% = $600 Remaining value = $3,000 - $600 = $2,400**Year 2**: Depreciation = $3,000 * 32.0% = $960 Remaining value = $2,400 - $960 = $1,440**Year 3**: Depreciation = $3,000 * 19.2% = $576 Remaining value = $1,440 - $576 = $864**Year 4**: Depreciation = $3,000 * 11.52% = $345.60 Remaining value = $864 - $345.60 = $518.40**Year 5**: Depreciation = $3,000 * 11.52% = $345.60 Remaining value = $518.40 - $345.60 = $172.80 **Book Value** = $172.80 (rounded to the nearest hundredth)### User Interaction:Please enter this calculated book value into the field provided and round to the nearest hundredth if necessary.---This format ensures clarity and provides step-by-step guidance on how to solve the problem using the given MACRS rates.

The modified accelerated cost recovery system (MACRS) is a depreciation system that allows the…

Answered: Using the MACRS rates from the…

Using the MACRS rates from the following table, what is the book value of a $3,000 computer after 5 years? Year MACRS Rate 1 20.0 % 2 32.0 % 3 19.2% 4 11.52% 5 11.52 % book value = [?]

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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