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Vinil7 [7]
3 years ago
5

A concrete and rock crusher for demolition work has been purchased for ​$50,000​, and it has an estimated SV of ​$10,000 at the

end of its​ five-year life. Engineers have estimated that the following units of production​ (in m3 of crushed​ material) will be contracted over the next five years. Using the units of production depreciation​ method, what is the depreciation allowance in year two​, and what is the BV at the end of year two​?
Business
1 answer:
solong [7]3 years ago
5 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

A concrete and rock crusher for demolition work has been purchased for ​$50,000​, and it has an estimated SV of ​$10,000 at the end of its​ five-year life.

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Book value= Original cost - accumulated depreciation

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Incomplete question. However, I answered from a general research perspective.

<u>Explanation:</u>

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Bill gore believed in keeping operational facilities small due to his focus on high quality interpersonal relationships, and as
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3 years ago
Chelsea Fashions is expected to pay an annual dividend of $1.26 a share next year. The market price of the stock is $24.09 and t
Stells [14]

Answer:

a. 7.83 percent

Explanation:

This is calculated by using the Gordon growth model (GGM) formula as follows:

P = d / (r - g) ……………………………………… (1)

Where;

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d = next year annual dividend = $1.26

r = cost of equity = ?

g = dividend growth rate = 2.6%, or 0.026

Substituting the values into equation and solve for r, we have:

24.09 = 1.26 / (r - 0.026)

24.09 (r - 0.026) = 1.26

24.09r - 0.62634 = 1.26

24.09r = 1.26 + 0.62634

24.09r = 1.88634

r = 1.88634 / 24.09

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Rounding to 2 decimal places. we have:

r = 7.83%

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