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vlada-n [284]
3 years ago
7

On April 1, 2016, Cyclone's Backhoe Co. purchases a trencher for $284,000. The machine is expected to last five years and have a

salvage value of $42,000. Compute depreciation expense for both years ending December 2016 and 2017 assuming the company uses the double-declining-balance method.
Business
1 answer:
harkovskaia [24]3 years ago
3 0

Answer:198,800usd by the end of 2016

119,280usd by the end of 2017

Explanation: 2016 9 months depreciation percent 30%. Then 284,000*30%=85,200usd.

2017 12 months depreciation rate 40%. Then 198800*40%=79520.

198800-79520=119280

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Answer:

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Explanation:

Mutual funds is a pool of funds from different people. This pool of fund is invested in different securities. These securities can be stocks, bonds, treasury bills, etc. In this way the risk is diversified. When you invest money with the money of other people, the pool of money or funds will minimize the risk associated with investing a single person's money in any security. Secondly, the mutual funds are managed by professionals who are expert in the field of managing funds. They better know when and how much funds to liquidate and at what time.

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Answer: Number of months = 66.87 months

Explanation:

Given that,

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Current\ balance = Monthly\ payment\times(\frac{1-present\ value\ factor}{r})

Current\ balance = Monthly\ payment\times(\frac{1-\frac{1}{(1+r)^{t}} }{r})

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\frac{18,500}{500}\times0.0195=1-\frac{1}{1.0195^{t} }

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1.0195^{t}=3.5906

Taking log on both side

t log(1.0195) = log(3.5906)

t = \frac{0.5551}{0.0083}

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