The book value of a $3,500 computer after 2 years is $2380
How to calculate book value
The book value is gotten by subtracting the product of the initial value and MACRS rate from the initial value.
The book value after 2 years = 3500 - (32% of 3500)
The book value after 2 years = 3500 - (0.32 * 3500) = 2380
The book value of a $3,500 computer after 2 years is $2380
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