Answer: $14,350
Explanation:
When using the straight-line method, depreciation expense is uniform across the PPE's useful life.
Sometimes the company would like the PPE to have a residual value at the end of the useful life so we have to cater for this also.
The formula then for calculating Straight Line Depreciation goes thus,
Straight Line Depreciation Expense = Cost of PPE - Residual Value / Useful life.
= 78,500 - 6,750 / 5 years
= $14,350
$14,350 will be charged as Depreciation till the end of the 5th year at which point the Equipment will be worth $6,750.
Answer:
lower than the interest rate of their respective countries.
Explanation:
The developing countries are always prone or used to having a low level of saving and a higher inflation, and these factors makes their various interest rates in their respective countries to be relatively high. The interest rate in Japan is more or less low most of the time compared to other countries for the reason that the very high rate of saving by households gives room for a great supply of funds to be channeled to borrowers.
Answer:
$760
Explanation:
The computation of the relevant cost is shown below:
= Discounted price per kilogram × number of kilograms - delivery cost
= $6.75 × 120 kilograms - $50
= $810 - $50
= $760
The delivery cost is already involved in the total cost. So, we have to deduct it to find out accurate relevant cost
. The other information which is given is not relevant. So, we ignored it
