The Ozark Bike Company recently entered into an agreement with a large Japanese retailer to distribute its bicycles in Japan. Ozark Bike Company sees itself in a favorable position because the yen is stronger in most of the time over the U.S. dollar. When the yen is stronger than the U.S. dollar, it's cheaper for Japanese customers to buy the U.S. products. This type of agreement should lead to more sales for the Ozark Bike Company which means their profits will in-turn be higher. Not only will profits rise, so will awareness of the product and help grow the Ozark Bike brand.
Highest growth rate based on GDP rate is found in Japan. This has been an ongoing trend for the last 100 years.
Double-declining-balance rate:
By straight-line method, annual depreciation expenses = (85,000-5,000)/5 = $16,000
Rate of depreciation = 16000/(85,000-5,000) = 0.2 = 20%
Then, double-declining-balance rate = 2*Straight-line rate = 2*20 = 40%
From 2nd January 2017 to 31st December 2018 can be approximated as 1 year.
Therefore,
Depreciation expense in yr 1 = 40/100 * 85,000 = $34,000
And,
Book value at December 31 2018 = $85,000 - $34,000 = $51,000
It can be seen that the correct answer is b.
the correct answer is c hope this helps
Answer:
D. Review your notes and clarify is the correct answer.
Explanation:
