A photocopier cost $105,000 when new and has accumulated depreciation of $96,000. if the business discards this plant asset, the result is a loss of 9,000.
During the asset's anticipated useful life, depreciation is allocated in order to charge a fair percentage of the depreciable amount in each accounting period. Amortization of assets with predetermined useful lives is included in depreciation. Depreciation enables businesses to recoup the cost of an item at the time of acquisition. Instead of collecting the full cost of an asset right away, the technique enables businesses to do so during the asset's lifecycle. This enables businesses to replace current assets with the necessary quantity of revenue in the future.
Subtract the asset's cost from its salvage value (what you anticipate it to be worth at the end of its useful life) to determine depreciation using the straight-line technique. The outcome is the amount or depreciable basis.
Depreciation = asset's cost - salvage value
Depreciation = $105,000 - $96,000
Depreciation = $9,000
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Answer:
D. $5,000
Explanation:
This deadweight in a lot of cases are seen to occur especially when demand and supply are not in equilibrium and in and in the above scenario, it is pegged at $5000. Therefore sometimes consumers experience shortages, and producers earn but they'd otherwise.
Taxes are also seen in the creation of deadweight loss because they prevent people from engaging in purchases they'd otherwise make because the ultimate price of the merchandise is above the equilibrium value. If taxes on an item rise, the burden is commonly split between the producer and therefore the consumer, resulting in the producer receiving less cash in on the item and therefore the customer paying the next price.
Answer:
D. Capacity
Explanation:
In order to applying for a loan, the financial institution analyze the borrower information in terms of creditworthiness i.e. collateral property, cash on hand, repayment conditions, status of the job. These factors should be based on the capacity of the borrower whether he or she is eligible for a loan or not
Therefore according to the given situation, the option D is correct and the same is to be considered
Answer:
$9.00.
Explanation:
The computation of the value of a put option is shown below:
Data provided in the question
Current price of the stock = $50
Risk free rate = 6%
Strike price = $55
Sale price = $7.20
Based on the above information
The value of put option is
Put = V - P + X exp(-r
t)
= $7.20 - $50 + $55 e
RF - 0.06(1)
= $7.20 - $50 + $51.80
= $9.00
Hence, the value of put option is $9
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