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victus00 [196]
3 years ago
9

MACRS depreciates automobiles in 6 years using these percents:

Mathematics
2 answers:
Sergio039 [100]3 years ago
6 0
<h2>Answer:</h2>

The book value at the end of the third year is $8640.

<h2>Step-by-step explanation:</h2>

Book value at end of year = Original Cost - Accumulated Depreciation

The automobile cost is $30000.

After 1st year, the depreciation will be =0.20\times30000=6000

After 2nd year the depreciation will be = 0.32\times30000=9600 dollars

Similarly after 3rd year the depreciation will be = 0.192\times30000=5760

Now, adding all the depreciation amounts:

6000+9600+5760=21360 dollars

Book Value at end of year = 30000-21360=8640 dollars

Therefore, the book value at the end of the third year is $8640.

tia_tia [17]3 years ago
4 0
Given that the book value of the automobile that was purchased is 30,000 and is to be depreciated for 3 years using MACRS method of depreciation the value of the automobile at the end of the year is 8,640 dollars.  This is computed by summing up the depreciation for the firswt 3 years which is equal to 71.2 per cent less 100 then it will be multiply to 30,000.
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