Answer:
The depreciation cost of the bus per unit is $ 1.4 which is purchased on January 1, 2019.
Explanation:
The depreciation cost per unit is computed as:
Depreciable asset = Cost - Salvage Value
= $205,860 - $7,900
= $197,960
Depreciation per unit = Depreciable asset /Useful life expected value
= $197,960 / 141,400
= $1.4
Therefore, the per unit cost is $1.4
This is a good deal as present value at the given rate was more compared to investment.
Given:
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We know that,
![[tex]Future\;value,\;FV=\frac{PV}{(1+(\frac{i}{n}))^{(n \times t)}}](https://tex.z-dn.net/?f=%5Btex%5DFuture%5C%3Bvalue%2C%5C%3BFV%3D%5Cfrac%7BPV%7D%7B%281%2B%28%5Cfrac%7Bi%7D%7Bn%7D%29%29%5E%7B%28n%20%5Ctimes%20t%29%7D%7D)
![](https://tex.z-dn.net/?f=)
Let assume number of compounding period per year,
n=1
(a-1)![Interest\;rate,\;i=8\;\%](https://tex.z-dn.net/?f=Interest%5C%3Brate%2C%5C%3Bi%3D8%5C%3B%5C%25)
![\\](https://tex.z-dn.net/?f=%5C%5C)
Future value, FV=![\frac{1400}{(1+(\frac{8\%}{1}))^{(1 \times 10)}}](https://tex.z-dn.net/?f=%5Cfrac%7B1400%7D%7B%281%2B%28%5Cfrac%7B8%5C%25%7D%7B1%7D%29%29%5E%7B%281%20%5Ctimes%2010%29%7D%7D)
(a-2)[/tex]
This is a good deal as present value at the given rate was more compared to investment.
(b-1)![[tex]Interest\;rate,\;i=11\;\%](https://tex.z-dn.net/?f=%5Btex%5DInterest%5C%3Brate%2C%5C%3Bi%3D11%5C%3B%5C%25)
![Future\;value,\;FV=\frac{1400}{(1+(\frac{11\%}{1}))^{(1 \times 10)}}](https://tex.z-dn.net/?f=Future%5C%3Bvalue%2C%5C%3BFV%3D%5Cfrac%7B1400%7D%7B%281%2B%28%5Cfrac%7B11%5C%25%7D%7B1%7D%29%29%5E%7B%281%20%5Ctimes%2010%29%7D%7D)
[/tex](b-2)
This is a good deal as present value at the given rate was less compared to investment.
<h3>Explain Investment?</h3>
Investments are defined as assets bought or invested in with the goal of increasing wealth and setting aside funds from salary or capital gains. The main purpose of an investment is to create an additional source of income or to generate a profit over a certain amount of time.
To learn more about Investment, visit:
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Answer:
A. not affect expenses in 2019.
Explanation:
Using the allowance method, when the amount is written off , the account receivable account is credited whereas the allowance for doubtful debts is debited
Moreover, it does not affect the income statement as there is no expenses incurred or no revenue earned is recorded
So, in this case, there is no affect on expenses account
Answer: a home currency will depreciate if the home inflation rate exceeds the foreign inflation rate.
Explanation:
Inflation erodes the value of a currency such that it is worth less than it was before. If the inflation in a country is higher than that of the inflation in another country therefore, the value of the currency of the former would be less valuable than the value of the currency of the latter because it suffered greater erosion in value.
The former's (home) currency will therefore depreciate against the foreign currency(latter) to reflect that its value is lower relative to the foreign currency.
Your deposit of $900,900 will increase by $<span>99,099 given the require reserve ratio
of 0.11. Remember that the reserve ratio is a part of a bank depositor’s total
account that banking institutions must keep as available cash. This is as
regulated and determined by the Federal Reserve.</span>