1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
erik [133]
3 years ago
12

The asset's book value is $70,000 on July 1, Year 3. On that date, management determines that the asset's salvage value should b

e $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:
a. $8,125.00
b. $7,375.00
c. $4,062.50
d. $3,750.00
e. $7,812.50

Business
1 answer:
Luden [163]3 years ago
8 0

Answer:

Option (c) is correct.

Explanation:

Given that,

Asset's book value as on July 1, Year 3 = $70,000

Asset's salvage value = $5,000

Original estimate = $10,000

Depreciation for remaining year 3 (6 months) :

= [( Book value - Salvage value) ÷ (useful life - years passed)] × (6÷12)

= [($70,000 - $5,000) ÷ (10 - 2)] × (6÷12)

= ($65,000 ÷ 8) × (6 ÷ 12)

= $8,125 × 0.5

= $4062.5

Workings:

Years passed: as 2 years already passed.

One table is missing from this question, so I attached that table with the answer.

You might be interested in
A pension plan is obligated to make disbursements of $2.5 million, $3.5 million, and $2.5 million at the end of each of the next
Anit [1.1K]

Answer:

Please see attachment

Explanation:

Please see attachment

5 0
3 years ago
for a monopolist: a. price equals average total cost. b. price is above marginal revenue. c. marginal revenue equals zero. d. ma
strojnjashka [21]

For a monopolist b. price is above marginal revenue.

<h3>What Is Marginal Revenue? </h3>

Marginal revenue can be regarded as  increase in revenue which is been gotten from  the sale of one additional unit of output.

As a monopolist that is the the only seller in the market, then their marginal revenue is usually above price because they don't have a competitor that is close enough.

Read more on Marginal Revenue here:

brainly.com/question/12231343

#SPJ11

8 0
2 years ago
Fill in the blanks: Stock prices fall if investors either expect _________ growth rates or require _________ returns.A. higher,
devlian [24]

Answer:

C. lower, higher

The reason for this is that when growth rates are lower investors will be willing to pay less for the stock is because low growth rate mean that the capital gains will be less as stock price is less likely to increase in the future and dividend growth is also less. Also  the DDM model D*(1+G)/1-R shows that mathematically a lower growth rate would mean lower stock price

Also Higher required returns mean that the investor requires higher returns to buy the stock, because he may view the stock as risky and requires higher returns for the risk he is taking or he may have a higher opportunity cost (for eg interest rates may be high) with other investments. Mathematically the DDM model D*(1+G)/R-G shows us that a higher R would mean lower stock price.

Explanation:

7 0
3 years ago
Read 2 more answers
Explain the significance of capital structure.
mojhsa [17]
Capital structure increases the ability of the company to find new wealth- creating investment opportunities.
4 0
3 years ago
Read 2 more answers
Which of the following is an expense that results from the usage of a natural​ resource? A. depletion B. obsolescence C. depreci
pshichka [43]

Answer:

A. depletion

Explanation:

Depletion  is provided as an expense for usage of natural resources like mines, quarries and oil wells.

4 0
3 years ago
Other questions:
  • Which of these is the best example of successfully managing a financial asset?
    15·1 answer
  • Why would stable prices be a goal of the US government? A. Inflation hurts borrowers. B. The government doesn't want to pay high
    9·2 answers
  • When a famous painting becomes available for sale, it is often known which museum or collector will be the likely winner. Yet, t
    10·1 answer
  • What is the Consumer Price Index (CPI) and how is it determined each month? How does the Bureau of Labor Statistics (BLS) calcul
    9·1 answer
  • The rate of inventions PRIOR to the Restoration of the Gospel was greater than the rate of inventions AFTER the Restoration.. Tr
    12·1 answer
  • How to work out opening balance?​
    7·2 answers
  • True or false A contract is a type of government protection?
    7·1 answer
  • Determine the future value if $5,000 is invested in each of the following situations: 7 percent for seven years
    7·1 answer
  • 5)True or False: Offering sales discounts on credit sales can benefit a seller by decreasing the delay in
    15·1 answer
  • What are healthcare cost estimates for a retired couple starting in 2030 and 2040?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!