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bazaltina [42]
4 years ago
7

Mellow Co. depreciates a $12,000 asset over five years, using the straight-line method with no salvage value. At the beginning o

f the fifth year, it is determined that the asset will last another four years. What amount should Mellow report as depreciation expense for year five?
Business
1 answer:
vaieri [72.5K]4 years ago
6 0

Answer:

$600

Explanation:

Using the straight-line depreciation method:

Cost amount $12,000:

useful life five years

depreciation per year: =$ 12000/ 5

       =$ 2,400.00

Book value at the beginning of year five:

=cost price minus four years of depreciation

=$12,000-($2400 x 4)= $ 12,000- $ 9,600

=$2, 400.00

Another four years of useful life:

Depreciation = Book value /4

   =$2400/4

   = $600

   

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4 years ago
Testbank Multiple Choice Question 122 On January 1, 2012, Bramble Corp. purchased for $768000, equipment having a useful life of
-BARSIC- [3]

Answer: $28,300

Explanation:

The gain that Bramble will recognize will goes thus:

First and foremost, we have to calculate the accumulated depreciation on the equipment and this will be:

= (768,000 - 36,000)/10 x 9

= 658,800

After that, we would find the value of the net Bmbook value on Dec 31, 2020 and this will be:

= 768,000 - 658,800

= 109,200

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= 137,500 - 109,200

= 28,300

7 0
3 years ago
Why there is limited foreign investment in Ethiopia?​
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Answer:

mainly because of the countries negative trade balance, but also because it is strictly regulated by the central bank which is the National bank of Ethiopia.

5 0
2 years ago
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because t
Gennadij [26K]

Answer:

The current share price is $74.62.

Explanation:

The constant growth model of the DDM requires is used to estimate the fair price per share of a stock based on the expected dividends that it will pay in future when these dividends are growing at a constant rate. The formula for this model is,

Price today = D1 / r - g

Where,

D1 is the dividend in year 1

r is the required rate of return

g is the growth rate in dividends

However as the company will pay dividends from year 10. Thus, the D10 will 14.

The value of the stock at year 9 will be,

Price at year 9 = 14 / (0.125 - 0.06)

Price at year 9 = $215.38

We will discount this by the required rate of return to calculate the present value.

Present price per share = [(14 / (0.125 - 0.06)) / (1+0.125)^9]

Present prie per share = $74.617

6 0
3 years ago
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