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2 June, 04:13

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

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  1. 2 June, 04:36
    0
    Book Value at end of year 6 = $100,000

    Explanation:

    An Asset is depreciated to salvage value therefore when depreciation is complete the book value equals salvage value or zero.

    Salvage value is an estimated value of what the company expects to earn after using the asset maybe when selling off the asset.
  2. 2 June, 04:40
    0
    Check the explanation

    Explanation:

    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

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