##### Calculating book value of an asset

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Genetic Insights Co. purchases an asset for \$18,972. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for \$4,425.

Calculate book value of an asset. Round the answer to two decimals.

Oct 3rd, 2015

 Percent Discount Year 0 \$ 18,972.00 Year 1 \$ 18,972.00 14.29% \$  2,711.10 Year 2 \$ 18,972.00 24.49% \$  4,646.24 Year 3 \$ 18,972.00 17.49% \$  3,318.20 Year 4 \$ 18,972.00 12.49% \$  2,369.60 Year 5 \$ 18,972.00 8.93% \$  1,694.20 Year 6 \$ 18,972.00 8.93% \$  1,694.20 Purchase Price \$ 18,972.00 Total Depreaciation \$ 16,433.55 Book Value \$  2,538.45
The total book value of the Asset in Year 6 is \$  2,538.45. Book Value is Equal to Value of an Asset less its depreciation.

Oct 3rd, 2015

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Oct 3rd, 2015
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Oct 3rd, 2015
May 29th, 2017
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