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OMB1001-81204 College Business Mathematics Quiz: Quiz: Ch 14 Depreciation Submit

ID: 2598239 • Letter: O

Question

OMB1001-81204 College Business Mathematics Quiz: Quiz: Ch 14 Depreciation Submit Quiz This Question: 1 pt 25 of 25 (19 complete) > This Quiz: 25 pts possible Use the MACRS Depreciation Rates table to find the book value at the end of 3 years of a computer costing $3,500. Round the amount of depreciation for each year to the nearest dollar before determining the book value. Click here to view the page 1 of the MACRS Table Click here to view the page 2 of the MACRS Table The book value at the end of year 3 is $ Round to the nearest dollar as needed.) Page 1 of the MACRS Table MACRS Deprediatika Races Recovery 3333000421000 5000 RS34 2 45 3200 19 219 75 24 44 1152 124 1150 6176 3175 2 1152 92 713 5 2 576 802 37 6 25 366 25 8935 50 2 Enter your a 6S6 591 140 36% 1174 2w 8:16 PM 12/14/2017

Explanation / Answer

Solution :-   Depreciation schedule

Conclusion :- Book value of computer at the end of year three = $ 1538.

Note :- Computer will form part of 5-Year property class under the MACRS depreciation system.

Year end Depreciation on computer Book value of computer 1 700 (3500 * 20 %) 2800 (3500 - 700) 2 896 (2800 * 32 %) 1904 (2800 - 896) 3 366 (1904 * 19.20 %) 1538 (1904 - 366)