Answer and Explanation:
the answer is attached below
Money serves as a good store of value except when an economy experiences a period of _____.
1 answer:
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Answer:
Please see the calculation explanation below and the depreciation expense chart for all methods is attached.
Explanation:
1. STRAIGHT-LINE DEPRECIATION METHOD:
<em>Depreciation Expense = (Total Cost - Residual Value) / Useful Life </em>
Depreciation Expense = ($70,000 - $10,000) / 3 years
Depreciation Expense = $60,000 / 3 years
Depreciation Expense = $20,000 per year
2. DOUBLE DECLINING BALANCE DEPRECIATION METHOD:
<em>Depreciation Expense Rate = (100% / Useful Life) x 2 </em>
Depreciation Expense Rate = (100% / 3) x 2
Depreciation Expense Rate = 66.67%
<em>2013: </em>
Depreciation Expense = $70,000 x 66.67% = $46,667
<em>2014: </em>
Depreciation Expense = ($70,000 - $46,667) x 66.67% = $15,556
Since the residual value is $10,000 and as per Double Declining Balance Method, the point at which Book Value is equal to the residual value, no depreciation is taken.
<em>Depreciation Expense = (Total Cost - Residual Value) - (Accumulated Depreciation) </em>
Depreciation Expense = ($70,000 - $10,000) - ($46,667)
Depreciation Expense = $13,333
<em>2015: </em>
No Depreciation Expense for year 3, as Book value is already equal to residual value in year 2.
3. PER HOUR DEPRECIATION METHOD:
<em>2013:</em><em> </em>
<em>Depreciation Cost per hour = (Engine Hours in 2013 / Total Engine Hours) x (Total Cost - Residual Value) </em>
Depreciation Cost per hour = (500 / 1,200) x ($70,000 - $10,000)
Depreciation Cost per hour = $25,000
<em>2014: </em>
<em>Depreciation Cost per hour = (Engine Hours in 2014 / Total Engine Hours) x (Total Cost - Residual Value) </em>
Depreciation Cost per hour = (400 / 1,200) x ($70,000 - $10,000)
Depreciation Cost per hour = $20,000
<em>2015: </em>
<em>Depreciation Cost per hour = (Engine Hours in 2015 / Total Engine Hours) x (Total Cost - Residual Value) </em>
Depreciation Cost per hour = (300 / 1,200) x ($70,000 - $10,000)
Depreciation Cost per hour = $15,000
Answer:
Compound interest; interest.
Explanation:
Compound interest can be defined as the interest that the bank pays you on the principal plus on the interest that you earned the preceding year. Thus, it is simply calculated by adding an interest to the initial principal i.e compounding the interest rather than withdrawal.
Mathematically, compound interest is given by the formula;
Where;
A is the future value.
P is the principal or starting amount.
r is annual interest rate.
n is the number of times the interest is compounded in a year.
t is the number of years for the compound interest.