Answered

Get clear, concise, and accurate answers to your questions on IDNLearn.com. Our Q&A platform offers detailed and trustworthy answers to ensure you have the information you need.

Using the MACRS rates from the following table, what is the book value of a [tex]\$2,500[/tex] computer after 4 years?

\begin{tabular}{|c|r|}
\hline Year & MACRS Rate \\
\hline 1 & 20.0\% \\
\hline 2 & 32.0\% \\
\hline 3 & 19.2\% \\
\hline 4 & 11.52\% \\
\hline 5 & 11.52\% \\
\hline 6 & 5.76\% \\
\hline
\end{tabular}

Book Value [tex]=\$[?][/tex]

Round to the nearest cent.

Sagot :

GinnyAnsweridn
To determine the book value of the computer after 4 years using the MACRS (Modified Accelerated Cost Recovery System) rates, let's follow a detailed step-by-step approach:

### Initial Value and MACRS Rates
We start with an initial book value of the computer:
- Initial Value = \[tex]$2,500 The MACRS rates for each year are provided as follows: - Year 1: 20.0% - Year 2: 32.0% - Year 3: 19.2% - Year 4: 11.52% - Year 5: 11.52% - Year 6: 5.76% ### Step-by-Step Depreciation Calculation #### Year 1 Depreciation: - Depreciation for Year 1 = Initial Value * MACRS Rate for Year 1 - Depreciation for Year 1 = \$[/tex]2,500 20.0% = \[tex]$2,500 0.20 = \$[/tex]500

#### Year 2 Depreciation:
- Depreciation for Year 2 = Initial Value MACRS Rate for Year 2
- Depreciation for Year 2 = \[tex]$2,500 32.0% = \$[/tex]2,500 * 0.32 = \[tex]$800 #### Year 3 Depreciation: - Depreciation for Year 3 = Initial Value * MACRS Rate for Year 3 - Depreciation for Year 3 = \$[/tex]2,500 19.2% = \[tex]$2,500 0.192 = \$[/tex]480

#### Year 4 Depreciation:
- Depreciation for Year 4 = Initial Value MACRS Rate for Year 4
- Depreciation for Year 4 = \[tex]$2,500 11.52% = \$[/tex]2,500 * 0.1152 = \[tex]$288 ### Total Depreciation After 4 Years - Total Depreciation = Depreciation for Year 1 + Depreciation for Year 2 + Depreciation for Year 3 + Depreciation for Year 4 - Total Depreciation = \$[/tex]500 + \[tex]$800 + \$[/tex]480 + \[tex]$288 = \$[/tex]2,068

### Book Value After 4 Years
- Book Value = Initial Value - Total Depreciation
- Book Value = \[tex]$2,500 - \$[/tex]2,068 = \[tex]$432 ### Summary The book value of the computer after 4 years, rounded to the nearest cent, is: - Book Value = \$[/tex]432.00

Thus, the book value of the \[tex]$2,500 computer after 4 years is \$[/tex]432.00.
We appreciate your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. For dependable answers, trust IDNLearn.com. Thank you for visiting, and we look forward to helping you again soon.