Answer:
$3,250.00
Explanation:
Cost price for the truck is $42,000
Salvage value for truck is $3000
Depreciable amount is cost price - salvage value
= $42,000 - $3000
=$39,000
The truck has three years of useful life: depreciation per year will be
=$39,000/3
=$13,000
In 2019, the truck operated for three months, ( October, November, and December)
The amount of depreciation to be recorded in 2019
=$13,000/12 x 3
=$,083.3333333 x 3
=$3,250.00
Answer:recession
Explanation:A recession occurs when there are two or more consecutive quarters of negative economic growth, as measured by gross domestic product (GDP) or other indicators of macroeconomic performance including unemployment
Answer:
$234,606
Explanation:
actual replacement cost = $350,000
effective age = 20 years
total economic life = 65 years
years left = 65 - 20 = 45 years
curable items = $45,000 ⇒ effective age 15 years
value of the property using modified age-life basis = (replacement cost - curable items) x (effective age / total economic life)
= ($350,000 - $45,000) - (15 years / 65 years) = $305,000 - 23.08% = $234,606
Answer:
a. Year 1
Asset Turnover = Total sales/Average assets
= 75,000 / [(54,000 + 46,000)/2]
= 1.5
Year 2
= 75,480 / [(46,000 + 42,800)/2]
= 1.7
b. Effectiveness in the use of assets to generate revenue
A higher Asset turnover ratio means that the company is effectively using their assets to generate revenue. As there is no company listed to compare Home Depot to, it can be said that they are making effective use of their asset to generate revenue as they are making more revenue than the value of their assets.
