An industrial robot that is depreciated by the MACRS method has B = $60,000 and a 5-year

Question:

An industrial robot that is depreciated by the MACRS method has B = $60,000 and a 5-year depreciable life. If the depreciation charge in year 3 is $8640, the salvage value that was used in the depreciation calculation is closest to: (d_t values for years 1, 2, 3, 4, and 5 are 10.00%, 18.00%, 14.40%, 11.52%, and 9.22%, respectively.)

(a) $0

(b) $10,000

(d) $30,000

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...

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