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andre [41]
3 years ago
15

Shining Star Preschool purchased a van for $38,000. Suppose MACRS allows vans to be depreciated fully in 6 years according to si

x fixed percents: 20% the first year, 32% the second year, 19.2% the third year, 11.52% the fourth and fifth years, and 5.76% the sixth year. What is the book value for the van at the end of the first year?
Mathematics
1 answer:
musickatia [10]3 years ago
3 0

Answer:

The book value for the van at the end of first year will be $30400

Step-by-step explanation:

Cost of van = $38,000

Amount of depreciation after one year = 20%

Finding 20% of 38,000

=38,000 *(20/100)

= 7600

so, amount of van after 1 year = 38,000 - 7600

= 30400

So, the book value for the van at the end of first year will be $30400

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