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Vsevolod [243]
3 years ago
9

Assume the macro islands can build either 5 hotels or 15 stores and the micro islands can build either 4 hotels or 20 stores in

the same time period. this data tells an economist that the
Business
1 answer:
Vlad1618 [11]3 years ago
4 0
<span>When you are given macro islands that can build five hotels or fifteen stores and micro islands can build around 4 hotels and 20 stores in the same time period, the data tells us that micro islands is the best option to build your business. Judging from the data, the number of possible stores in micro islands that can be built is greater than the macro islands. </span>
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Apex Fitness Club uses straight-line depreciation for a machine costing $23,860, with an estimated four-year life and a $2,400 s
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Answer:

1. Book value at end of year 2 = $13,130

2. Depreciation from year 3 for last 3 years = $3,710 each year, that is $11,130 for three years.

Explanation:

As for the provided details, we have:

Cost of machinery = $23,860

Expected life = 4 years

Salvage value = $2,400

Straight line depreciation = \frac{23,860 - 2,400}{4} = 5,365

Under straight line method depreciation remains constant for life of asset.

Book value at end of year 2 = $23,860 - ($5,365 \times 2) = $13,130

Thereafter in the beginning of year 3 the estimate is made to realize that the total remaining life expected is 3 years, with salvage value $2,000

Thus, depreciation from year 3 = \frac{13,130 - 2,000}{3} = 3,710

Therefore, depreciation from year 3 to year 5 = $3,710 each year.

Total depreciation of last 3 years = $3,710 \times 3 = $11,130

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