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Delicious77 [7]
3 years ago
11

Warren corporation purchased a truck at a cost of $60,000. It has an estimated useful life of five years and estimated residual

value of $5,000. At the beginning of year three, warren's managers concluded that the total useful life would be four years, rather than five years. There was no change in the estimated residual value. What is the amount of depreciation that warren should record for year 3 under the straight-line depreciation method?
Business
1 answer:
s344n2d4d5 [400]3 years ago
6 0

Answer:

What is the amount of depreciation that warren should record for year 3 under the straight-line depreciation method? $15500

Explanation:

Net Value Dep. year End Net value.

Year 1 55000 12000          43000

Year 2 43000 12000          31000

Year 3 31000 15500          15500

Year 4 15500 15500            0

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. A building owner charges net rent of $20 in the first year, $21 in the second year, and $22 in the third year, but is providin
Anit [1.1K]

Answer: $17.28

Explanation:

6 month free concession in first year drops rent to:

= 20 / 2

= $10

Effective rent = [Present value of Year 1 rent + Present value of Year 2 rent + Present value of Year 3 rent ] / [ 1 - (1 / (1 + rate)^ number of years) / rate]

= [(10 / (1 + 10%) ) + (21 / (1 + 10%)²) + (22 / (1 + 10%)³)] * [1 - (1 / (1 + 10%)³/ 10%)]

= (9.09 + 17.355 + 16.5289) / 2.48685

= $17.28

8 0
2 years ago
Which of the following would further an economic goal of efficiency?
max2010maxim [7]

Answer:

The correct answer is (C)

Explanation:

Economics is all about allocating limited resources to attain maximum utility. In that regard, efficiency can be achieved by giving contracts to companies with higher productivity. These companies are all about attaining maximum productivity by investing limited resource. More productivity will increase the utility, and that will improve economic efficiency. So it is critical to give projects and contracts to certain companies which can increase the overall productivity.

7 0
3 years ago
In an open-market operation, the Fed buys $10 million of government bonds from individual investors. If the required reserve rat
Fittoniya [83]

Answer:

$100 million ; $10 million

Explanation:

Required reserve ratio (r) = 10%

Worth of bond = $10,000,000

The smallest increase can be thought of as being the $10million generated from open market operation and could be held by the bank as reserve.

To calculate the largest increase in deposit:

Money multiplier * deposit (worth of bond)

Money multiplier = (1 / reserve ratio)

Money multiplier = (1 / 0.1) = 10

Increase in deposit = 10 * $10,000,000 = $100,000,000 ( $100 million)

6 0
3 years ago
Ken and traci are two woodworkers who both make tables and chairs. in one month, ken can make 3 tables or 18 chairs, whereas tra
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3 years ago
Read 2 more answers
On December 31, 20X2 and 20X3, Apex Co. had 3,000 shares of $100 par, 5% cumulative preferred stock outstanding. No dividends we
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Answer: the correct answer is a disclosure of $20,000

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