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MakcuM [25]
2 years ago
8

A land grant university has upgraded its Course Management System (CMS), integrating the system throughout all of its main campu

s and branch campuses around the state. It has purchased a set of 15 servers and peripherals for needs associated with the CMS. The total cost basis is $120,000 and expected use will be 5 years, after which it will have no projected value. Calculate the depreciation deduction and book value for each year
Business
1 answer:
Elanso [62]2 years ago
8 0

The depreciation deduction and the book value each year using the straight line method is

Year                     Depreciation deduction       Book value

1                                 $24,000                                $96,000

2                               $24,000                                  $72,000

3                               $24,000                                  $48,000

4                             $24,000                                     $24,000

5                              $24,000                                     0

<h3>What is the depreciation expense?</h3>

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

120000 / 5 = $24,000

Depreciation expense each year would be $24,000

Book value = cost of the asset - accumulated depreciation

To learn more about straight line depreciation, please check: brainly.com/question/6982430

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3 years ago
J Corp. common stock is priced at $36.50 per share. The company just paid its $0.50 quarterly dividend. Interest rates are 6.0%.
viva [34]

Answer:

Explanation:

The time (T) = 6 months = 6/12 years  = 0.5 years

Interest rate (r) = 6% = 0.06

The stock is priced [S(0)] = $36.50

The price the stock sells at 6 months (V_c) = $3.20

European call (K) = $35

The price (P) is given by:

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3 years ago
ABC Company insured its building on a replacement cost basis for $700,000 under a property insurance policy that included an 80%
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Answer:

$35,000

Explanation:

Given that

Insurance = $700,000

Sustained cost = $40,000

Replacement cost = $1,000,000

Policy = 80%

The computation of amount eligible for payment is as shown below:-

Insurance required = Cost of building × Co insurance

=$1,000,000 × 0.80

= $800,000

The amount eligible for payment = (Insurance Carried ÷ Insurance Required) × Loss

= $700,000 ÷ ($1,000,000 × 80%) × ($40,000)

= $700,000 ÷ $800,000 × $40,000

= 0.875 × $35,000

= $35,000

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