Answer:
The book value of the machine at the end of 2021 is $620000.
Explanation:
The straight line depreciation allocates a constant depreciation expense throughout the useful life of the machine. The straight line depreciation expense can be calculated using the following formula,
Depreciation expense per year = (Cost - Residual value) / estimated useful life
Depreciation expense per year = (1000000 - 50000) / 5 = $190000 per year
The book value of asset is the value of the asset calculated by deducting Accumulated depreciation from its cost.
The book value of the machine at the end of 2021 will be the, considering the depreciation expense for year 2021 has been charged,
Accumulated depreciation till 2021 end = 190000 for Year 2020 + 190000 for Year 2021 = $380000
Book value at the end of 2021 = 1000000 - 380000 = $620000
Answer:
Quota
Explanation:
This is an example of quota. A quota is when a physical limit is set on the number of imports a country can make of a specific type of a product. Protectionists implement this to safe guard the local industry. They allow a certain number of imports for the quota imposed product so that even after imports there is enough market demand that local produce of the similar product can be sold. Quotas may also be imposed to restrict imports in general to correct balance of trade or as a retaliation to other countries who might have imposed quotas on local exports.
Hope that helps.
Answer:
monthly mortgage interest is less than monthly lease cost
Explanation:
4% of 1000000
= $40,000 per year
Per month: 40000/12
= %3,333.33
Monthly mortgage interest is less than monthly lease cost