Answer:
Annual depreciation= $9,000 per year
Explanation:
Giving the following information:
Scroll purchased equipment from Pirn for $36,000 on January 1, 20X1, that is depreciated using the straight-line method over four years.
<u>I will assume that the salvage value is cero. Using the straight-line method, we can calculate the annual depreciation using the following formula:</u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (36,000 - 0)/4= $9,000 per year
Answer:
Discretionary income
Explanation:
Discretionary income can be described as the amount of money that an individual have left to save, spend, or invest after he has paid taxes and for necessities.
The necessities are food, clothing and shelter which are the most important needs of human beings.
Discretionary income is therefore spent on vacations, luxury goods, and other commodities that are not essential.
Therefore, the $2,800 left over for the Johnsons is their discretionary income.
Answer:
The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project is $35,640,000.
Explanation:
Cash flow = Opportunity costs + cost + upgrdation
= $11.7 million + $22.9 million + $1,040,000
= $35,640,000
Therefore, The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project is $35,640,000.
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