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liubo4ka [24]
3 years ago
10

g The La Salle Bus Company has decided to purchase a new bus for $95,000 with a trade-in of their old bus. The old bus has a BV

of $10,000 at the time of the trade-in. The new bus will be kept for 10 years before being sold. Its estimated SV at that time is expected to be $15,000. a. Determine which asset class of the bus. b. Determine annual Straight-Line Depreciation charge'
Business
1 answer:
dedylja [7]3 years ago
3 0

Answer:

The new bus is rolling stock asset

depreciation is $8,000

Explanation:

Rolling stock asset  in the U.S is a conveyance vehicle such a buses,vans ,locomotives,ferryboats and so on.

annual depreciation =(cost-salvage value)/useful life

cost of the new bus is $95,000

salvage value is $15,000

useful life is  10 years

yearly depreciation charge =($95,000-$15,000)/10 years

                                              =$8,000

Note that the $10,000 trade-in value is relevant when computing the cash payable to the car dealer,it is not deducted here since it forms part of asset cost.

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8 0
3 years ago
sarah Jones wants to deposit $2,000 per year into an account earning 4 percent for the next 3 years, so she can purchase a used
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Answer:

Compounding formula would be used here which is as under:

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