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netineya [11]
2 years ago
9

Revision of Depreciation

Business
1 answer:
alexgriva [62]2 years ago
3 0
  1. The annual depreciation expense is $17,000.
  2. The book value at the end of the twentieth year of use is $425,000.
  3. The depreciation expense for each of the remaining 20 years is $20,000.
<h3>What is the annual depreciation expense?
</h3>

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

Annual depreciation = ($765,000 - $153,000) / 36 = $17,000

Book value in the 20th year = cost of the asset - accumulated depreciation

765,000 - (17,000 x 20) = $425,000

Depreciation expense for each of the 20 years = (book value - new residual value) / new useful life

(425,000 - $25,000) / 20 = $20,000

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

#SPJ1

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Which ratio is helpful in understanding whether the relationship between cash and marketable securities is reasonable in relatio
slamgirl [31]

Answer:

The ratio that is helpful in understanding whether the relationship between cash and marketable securities is reasonable in relation to current assets or total assets is;

Current assets/Total assets

Explanation:

Current assets represent a portion of the total assets that can be converted into cash or marketable securities quickly. A higher Current assets to total assets helps one to know the amount of the total assets that can be liquidated fairly quickly. The current assets should be able to be converted into cash or cash equivalents within a year to be deemed as a current asset. Examples of current assets are; cash, cash equivalents, stock inventories, market securities, accounts receivable, inventories and other liquid assets.

Current assets are the exact opposite of long-term assets, since the latter represents the portion of total assets that can not be easily converted in cash and cash equivalents within a year. They usually take a much longer time to convert into cash. They are; equipment, land and buildings.

The total assets include all the assets mentioned above. The summation of currents assets and long-term assets form the total assets.

5 0
3 years ago
If the coupon rate on a bond is higher than the yield to maturity, Multiple Choice the bond sells at a discount. the coupon rate
Law Incorporation [45]

Answer:

the current yield on the bond is lower now than when the bond was originally issued.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

A yield to maturity can be defined as the bond's total rate of return required by the secondary market while the coupon rate is defined as the annual interest of a bond divided by its face value.

Hence, if the coupon rate on a bond is higher than the yield to maturity, the current yield on the bond is lower now than when the bond was originally issued.

7 0
2 years ago
Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for C
yarga [219]

Answer:

$8

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.

Consumer surplus = willingness to pay - price

The consumer surplus of the 10th scarf :

Willingness to pay for the 10th scarf - price of the scarf

Willingness to pay for the 10th scarf =  $200 / 10 = $20

Consumer surplus = $20 - $12 = $8

I hope my answer helps you

5 0
3 years ago
Read 2 more answers
According to MACRS tax rate table, which of the following classes uses straight-line depreciation?
Vinil7 [7]
The answer is Residential rental property
8 0
3 years ago
In a market economy, decisions about which goods are produced are based
STatiana [176]

Answer:

B. what businesses believe will generate the most profits.

Explanation:

A market economy is one where the factors of production are owned by the private sector. Production and distribution of products and services are in the hands of private individuals and firms. The government's role is mostly regulation and the provision of public goods.

In the market economy, the private sector engages in business to make profits. They risk their resources in producing goods and services that can increase their wealth. Only the products that are likely to generate profits are produced.

4 0
2 years ago
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