When investors give computer instructions to sell automatically to avoid potential losses if their stock price dips to a certain
1 answer:
You might be interested in
Answer:
(D) Annual depreciation will be $11000
And book value will be $38000
Explanation:
We have given Kansas purchased equipment for $60000
So Acquisition cost = $60000
Residual value = $5000
We know that annual depreciation is given by
Life time = 5 years
Annual depreciation expense
Depreciation expense is the same every year under straight-line. Therefore, in 2013 the depreciation expense is $11,000
Book value is given by
Book value = Acquisition Cost - Accumulated Depreciation
=
The Book Value of the asset is therefore $38,000 after 2 years of service