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sasho [114]
3 years ago
7

On November 1, 2016, Love Company places a new asset into service. The cost of the asset is $90,000 with an estimated 5-year lif

e and $10,000 salvage value at the end of its useful life. What is the depreciation expense for 2017 if Love Company uses the straight-line method of depreciation?
Business
1 answer:
Alla [95]3 years ago
6 0

Answer:

$16,000

Explanation:

The computation of the depreciation expense under the straight-line method is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($90,000 - $10,000) ÷ (5 years)

= ($80,000) ÷ ( 5 years)  

= $16,000

We simply deduct the salvage value from the original cost and then divide it by its useful life. So, that the depreciation expense would come for the particular year

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Explanation:

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Why do southeast asian farmers continue to practice slash-and-burn agriculture and shifting cultivation?
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3 years ago
Market failure occurs when A. the market system fails to allocate resources to each individual according to their needs. B. the
AysviL [449]

Answer:

B. the unrestrained market economy leads to too few or too many resources going to a specific economic activity.

Explanation:

The economic situation whereby the distribution of goods and services in the free market becomes inefficient is known as Market Failure. It is the phenomenon in which price system fails to account for all the costs and benefits necessary to provide and consume a good or service. It occurs when the unrestrained market economy leads to too few or too many resources going to a specific economic activity. It also occurs when there is a state of disequilibrium in the market due to market distortion.

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3 years ago
What is the effect on NPV of an asset if the salvage value is ignored?A)NPV would be understated. B)No effect C)NPV would be ove
Anna11 [10]

Answer:

The correct answer is A)NPV would be understated.

Explanation:

NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

The Salvage value is added at the end of the cash flow. So is a cash inflow.  

And if we ignore salvage value the difference, the cash inflows will be smaller,  so the NPV would be understated.

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