Macrs depreciates automobiles in 6 years using these percents:
20% the first year;
32% the second year;
19.2% the third year;
11.52% the fourth and fifth years; and
5.76% the sixth year.
for an automobile that cost $30,000, what is the book value at the end of the third year? (hint: to start, calculate the annual and accumulated depreciation for the first three years.)

The book value at the end of the third year is $8640.

Book value at end of year = Original Cost - Accumulated Depreciation

The automobile cost is $30000.

After 1st year, the depreciation will be =

After 2nd year the depreciation will be = dollars

Similarly after 3rd year the depreciation will be =

Now, adding all the depreciation amounts:

dollars

Book Value at end of year = dollars

Therefore, the book value at the end of the third year is $8640.

step-by-step explanation: