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Using the MACRS rates from the following table,
what is the book value of a $3,500 computer after 2
years?
Year MACRS Rate
1
20.0 %
2 32.0 %
3 19.2 %
4 11.52 %
5 11.52 %
book value = [?]

Respuesta :

raphealnwobi

The book value of a $3,500 computer after 2 years is $2380

How to calculate book value

The book value is gotten by subtracting the product of the initial value and MACRS rate from the initial value.

The book value after 2 years = 3500 - (32% of 3500)

The book value after 2 years = 3500 - (0.32 * 3500) = 2380

The book value of a $3,500 computer after 2 years is $2380

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