Rust Industries purchased a wood pulp mixer for $30,000. Using the MACRS method, calculate the book value at the end of year 3. (Round all dollar amounts to the nearest cent)

Question

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The MACRS depreciation rates for a 5-year property are:Year 1: 20.00%Year 2: 32.00%Year 3: 19.20%Year 4: 11.52%Year 5: 11.52%The book value at the end of year 3 is:$30,000 - (20.00% x $30,000) - (32.00% x $30,000) - (19.20% x $30,000) = $13,119.00

Rust Industries Purchased a Wood Pulp Mixer for $30,000