Answer:
$60,000
Explanation:
Given:
Purchase price = $80,000
Old mortgage value = $65,000
Market value of house = $110,000
New mortgage value = $50,000
Equity in the house = ?
Computation of Equity in the house :
Equity in the house = Market value of house - New mortgage value
Equity in the house = $110,000 - $50,000
Equity in the house = $60,000
Answer: B. Both firm A and firm B choose the low price.
Explanation:
Both firm A and Firm B will choose the low price and make profits of $3 if there is no cooperation.
This is because at any other price, the other firms could go with the low strategy and get more profit.
For instance, if Firm A is using a low price and Firm B is using a high price then Firm A makes profit of $10 whilst B makes $1.
Conversely, if Firm B charges a low price and A a high price, A will make paltry profits of $1 while B would make $10.
Their best option therefore is to both pick the low price and make $3.
If they were cooperating they could both charge a high price and make $5 each.
Your question was incomplete so I attached the payoff matrix.
Answer:
The depreciation charge in 2021 is $ 164,000.00
Explanation:
Annual depreciation charge=cost-salvage value/useful life
cost is $610,000
salvage value is $61,000
useful life is 9 years
Annual depreciation charge=($610,000-$61,000)/9=$61000
The depreciation of charge of $61000 is applicable to years 2018 ,2019 and 2020 respectively.
The estimates of the asset changed in the year 2021,hence a new depreciation based on the present book value is required.
revised depreciation charge=$610,000-($61,000*3)-$99,000/(5-3)=
$164,000.00
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