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Reversing Rapids Co. purchases an asset for $157,188. This asset qualifies as a five-year recovery asset...

Reversing Rapids Co. purchases an asset for $157,188. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of year 4 for $10,790. Calculate book value of an asset.

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Book value on purchase less: accumulated depreciation Book value on sale $157,188.00 $130,025.91 $27,162.09) 157188*(0.2+0.32

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