Answer:
Option C Synergy
Explanation:
Synergy is the additional value that company generates for the shareholders as a result of extensive mutual co-operation in resource management. This extensive mutual co-operation results in lower costs of operations which means both the companies has gain increased profits as a result of synergy.
Synergy is the main reasons why companies acquires companies which is in the same line of business or whose operations are largely similar to those of the company.
Answer:
The annual depreciation under SL is $16000 per year.
Explanation:
The depreciation expense under Straight Line (SL) method remains constant throughout an asset's useful life. The depreciation under straight line method is calculated by calculating the value of the asset that is eligible for depreciation, which is its cost less the salvage value (SV) and dividing it by the asset's useful life.
The straight line depreciation per year = (Cost - SV) / estimated useful life
Annual depreciation under SL = (100000 - 20000) / 5 = $16000 per year
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