Answer:
$4,800 each
Explanation:
The computation of the depreciation expense for the first two year under the straight-line method is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($120,000 - $0) ÷ (25 years)
= ($120,000) ÷ (25 years)
= $4,800
In this method, the depreciation is same for all the remaining useful life
Hence, the depreciation of $4,800 is to be charged separately for each year
Answer:
Benefits from related & unrelated diversification.
Explanation:
Firms' benefit(s) from related diversification :
- Building & developing market power - By sharing the related diversification going on in entire industry.
- Sharing activities & market linkages with other businesses - Associated diversification implies forward & backward linkages.
Firms' benefit(s) from unrelated diversification :
- Leveraging & enhancing different core competencies, USP - By Focusing on self paced unique diversification
- Creating a different ostentation brand - Creating a strong brand, capable of becoming a market leader, rather than market follower
Key concepts explaining firm success or failure from either diversification are implicit within above explanation.
Answer:
First option is the right choice.
Explanation:
He will not have as much money for college classes, because he will have to pay for the trailer and its maintenance.
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