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MaRussiya [10]
1 year ago
9

A company purchased a delivery van for $28,400 with a salvage value of $3,900 on september 1, year 1. it has an estimated useful

life of 5 years. using the straight-line method, how much depreciation expense should the company recognize on december 31, year 1
Business
1 answer:
Lunna [17]1 year ago
8 0

The deprecation expense in year 1 is $1225.

<h3>What is the depreciation expense in year 1?</h3>

Depreciation is a method that is used to expense the carrying value of an asset. Straight line depreciation is a depreciation method that allocates the deprecation expense evenly across the useful life of the asset.  

Straight line depreciation expense is a function of the useful life of the asset, the cost of the asset and the salvage value of the asset.

Straight line depreciation expense = (number of months from Sept to Dec / number of months in a year) x (Cost of asset - Salvage value) / useful life

(3/12) x [(28,400 - 3900) / 5]

1/4 x (24,500/5) = $1225

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

#SPJ1

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Answer:

The nominal interest rate which the bank will offer is of 10.24%

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according to Irwin formula the bank will charge a nominal rate that ensures a real rate of 6% thus:

\frac{1+r_n}{1+ \theta} -1 =r_e

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An individual has $2000 in physical assets, and $600 in cash initially. This person faces the following loss distribution to the
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Answer with Explanation:

Probability   Expected Loss           Loss Forecast

0.5                          0                                0

0.1                        200                              20

0.2                       400                              80

0.1                       1000                             100

0.1                       2000                            200

1.00                     Total                             400

Now,

A. Final Wealth with no Insurance = Physical Assets of the person + Cash Assets - Total Loss Forecast

By putting values, we have:

Final Wealth with no Insurance = $2,000 + $600 - $400 = $2,200

B. For Full insurance, we will not consider expected loss because we will receive Insurance Premium instead:

Final Wealth with Full Insurance = Physical Assets + Cash Assets - Insurance Premium

By putting values, we have:

Final Wealth with Full Insurance = $2,000 + $600 - $600 = $2,000

C. Final Wealth with Partial Insurance and $200 deductibles = Physical Assets + Cash Assets - Insurance Premium For Partial Coverage - Deductible

By putting values, we have:

Final Wealth with Partial Insurance and $200 deductibles = $2,000 + $600 - $450  - $200 = $1,950

D. Final Wealth with 75% Co-insurance = Physical Assets + Cash Assets - Insurance Premium - Co-payment

By putting values, we have:

Final Wealth with 75% Co-Insurance = $2,000 + $600 - $450 - (75% * $400)

= $1,850

E. Final Wealth with Partial Insurance and $1,000 Upper Limit = Physical Assets + Cash Assets - Insurance Premium - Maximum Loss Expected

By putting values, we have:

= $2,000 + $600 - $450 - (Probability 0.1 * $2,000) = $1950

From the above, we can say that the best option here in descending order is as under:

1.  A. Final Wealth with no Insurance

2.  B. With Full insurance

3.  C. Final Wealth with Partial Insurance and $200 deductibles & E. Final Wealth with Partial Insurance and $1,000 Upper Limit

4.  E. Final Wealth with Partial Insurance and $1,000 Upper Limit

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2. YES

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4. $250,000

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2. Return on Assets should be beyond satisfactory for Kyzera because its performance is better than that of the industry average which is 12%

3. Total expenses for Kyzera can be derived from the formula: Total Revenue - Total Expenses = Net Profit.

Therefore 475,000 - Total expenses = 65,000.

Total expenses = 475,000 - 65,000 = $410,000

4. The average total amount of liabilities plus equity can be derived from the balance sheet equation that states that TOTAL ASSETS = EQUITY+LIABILITIES.

Therefore liabilities plus equity = $250,000

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