Answer:a
Explanation:
Cost of Trailer - $188,000
Salvage value $28,000
Useful life: 8 years
Depreciable amount - $160,000
Expected miles coverage - 352,000
Mileage in 2020 = 44,500
Mileage in 2021 = 41480
Depreciation rate = 1/8*100 = 12.5%
Straight line :
160,000/8 = 20,000 2020 2021
20000 20000
Units of production (44500/352000*160000) (41480/352000*160000)
20,227.27 18,854.54
Double declining 25%*188000 25%*141000
balance 47000 35250
Answer:
$90,900
Explanation:
Cost of truck = $303,000
Expected millage = 114,000 miles
Residual value = 0
Millage cover in first year = 34,000 miles
Depreciation is the systematic allocation of cost to an asset based on usage.
The depreciation of this truck is based on the millage covered. Hence the depreciation to be recognized in the first year
= (34,000/114,000) × 303,000
= 0.30 × 303,000 (intermediate calculations rounded to two decimal places)
= $90,900 (to the nearest dollar)
Answer:
A) The amount of the premium in fair insurance policy that replaces Beths car, must be equal to the probability or expectation of claim of car theft.
Therefore, the Premium amount = 20000 x (1/200)
= 20000 (0.005)
= $100
B) If an Insurance company charges 0.6% for replacing a stolen car, then the policy will cost beth:
20000* 0.6%
= 12,000/100
= $ 120
C) To be risk-neutral means to be indifferent to the risk. This means that Beth would be indifferent. She most likely will be focused on maximizing value for money. In other words, she will NOT pay for the insurance policy in part b because part A provides her with the exact (or fair) premium for her insurance.
D) The moral hazard problem is this, people tend to become more careless with an insurance policy in place. This moral hazard arises form the knowledge that there is an insurance policy that caters to their risks.
As a matter of practice, therefore, insurance companies factor this increased risk into their premiums. Where the premium was supposed to be $100, they may charge $120.
In summary, it means that Beth most likely will move from becoming risk neutral to becoming (to a certain degree) more risk loving.
Cheers!
Is taxes inclining each employs portions of there social security and medicare.<span />
Explanation:
General Journal
April 18
Debit Short-term Investments 25,030
Credit Cash 25,030
(440x$56= 24,620+390) = 25,030
May 30 ,
Debit Cash 572
Credit Dividend Revenue 572
1.30×440= 572
