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Aleksandr [31]
3 years ago
7

Schager Company purchased a computer system at a cost of $40,000. The estimated useful life is 10 years, and the estimated resid

ual value is $5,000. Assuming the company will use the double-declining-balance method, what is the depreciation expense for the second year?
(A) $6,400.
(B) $5,600.
(C) $8,000.
(D) $7,000.
Business
1 answer:
Elodia [21]3 years ago
7 0

Answer:

The correct answer is B: $5,600

Explanation:

Giving the following information:

Schager Company purchased a computer system for $40,000. The estimated useful life is 10 years, and the estimated residual value is $5,000.

Double-declining balance method= Netbook value* (2/useful life in years)

Year 1:

Double-declining balance method= (40000-5000)*(2/10)= $7000

Year 2:

Double-declining balance method= (35000-7000)*0.20= $5,600

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Maxwell Communications paid a dividend of $1.35 last year. Over the next 12 months, the dividend is expected to grow at 11 perce
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Answer:

Current dividend paid (Do) = $1.35

Growth rate (g) = 11% = 0.11

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Po = Do<u>(1 + g)</u>    

           Ke - g

Po = $1.35<u>(1 + 0.11)</u>

                 0.24 - 0.11

Po = <u>$1.4985</u>

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Explanation:

The current market price of the stock is a function of current dividend paid, subject to growth rate, divided by the current market price of the stock.

4 0
3 years ago
What is the value today of $4,400 per year, at a discount rate of 8.3 percent, if the first payment is received 6 years from tod
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Answer:

Present Value = $290.20

Explanation:

The present value of a future payment can be calculated with the following formula:

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Where i is the annual interest rate or discount rate, and t is the number of years until the payment will be received.

PV = Present Value = ?

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Learn more about competitive market here: brainly.com/question/8753703

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