What will the elasticity of resource demand be if unit wages rise by 5 percent and the number of employed workers falls by 12 pe
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Answer:
$22000 and $50000.
Explanation:
Given: Purchased value of equipment- $72000.
Residual value- $6000
Estimated useful life of equipment- $ 5 years.
Now, finding value of depreciation for 2011 using the sum of the years digits method.
Depreciation cost=
⇒ Depreciation cost=
∴ Depreciation cost= $66000.
Depreciation fraction for 1st year=
Depreciation expense for 1st year=
∴ Depreciation for 2011 is $22000.
Next, lets find out the book value at the end of first year.
Book value=
Book value=
∴ Book value at December 2011 is $50000.