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Computing depreciation

Go to https://www.dell.com (Links to an external site.)Links to an external site.

Find the price of a computer system that you would like to buy. Assume you bought this system for business use and the system has a residual value of $400. Compute the depreciation each year under a 5-year straight-line depreciation. Also, calculate the depreciation using MACRS (Tables 17.4 and 17.5 in the text). 

Discussion Questions 

  • Please copy and paste the link to the computer you chose for this problem.
  • Please copy and paste your depreciation calculations. 
  • Based on the cost of this computer system, would you keep it for more than 5 years? Why or why not? 
  • Do you feel a computer system would actually be worth far less than the depreciated value you calculated? Why?

Reference no: EM131724071

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