An automated assembly robot that cost $400,000 has a depreciable life of 5 years with a...

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An automated assembly robot that cost $400,000 has a depreciable life of 5 years with a...

An automated assembly robot that cost $400,000 has a depreciable life of 5 years with a $100,000 salvage value. The MACRS depreciation rates for years 1, 2, and 3 are 20%, 32% and 19.2% respectively. What is the book value at the end of year 6?

Group of answer choices

a 0.192%

b $23,040

c $115,200

d $0.00

business economics

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Answer 1

Answer #1

Year	Depreciation Rate	Depreciation=400000*rate	Book value
1	20	80000	320000
2	32	128000	192000
3	19.2	76800	115200
4	11.52	46080	69120
5	11.52	46080	23040
6	5.76	23040	0

so, the book value at the end of year 6 = 0

option(D)

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Answer 2

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