1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ket [755]
3 years ago
9

A company purchased a delivery truck on January 1, 2021, for $100,000. The truck has an estimated life of 10 years and an estima

ted residual value of $10,000. If the company uses double-declining balance, what would be the book value of the truck after two years?
Business
1 answer:
Ray Of Light [21]3 years ago
5 0

Answer: The book value of the truck after two years, using the double-declining balance is $64,000.

Explanation: The double-declining method is otherwise known as reducing balance method. It is usually derived by using the formula below:

Double-declining depreciation = 2 X SLDP X BV

Where SLDP = straight-line depreciation percentage

            BV = Book value of the asset (Cost minus depreciation)

So using the straight-line depreciation method, we need to remove the salvage value from the cost and then divided by 10 years. That is, ($100,000 - $10,000) / 10 years = $9,000 yearly depreciation expense.

However, under the double-declining method, we need to divide the 100% by the useful life of the asset first to get the SLDP then multiply by 2, that is, 100%/10 years = 10% x 2 = 20%.

So 20% x $100,000 in year 1 (December 31, 2021) is $20,000

In year 2 (December 31, 2022), 20% x $80,000 ($100,000 - $20,000) = $16,000 and so on. The depreciation charge would stop immediately it falls below the salvage value of $10,000.

So the book value of the asset at year 2 is $64,000 ($100,000 - $36,000 accumulated depreciation)

You might be interested in
A. by how much will gdp change if firms increase their investment by $11 billion and the mpc is 0.9?
Sliva [168]

Answer:

The answer is <u>"$110 billion".</u>

Explanation:

Firms increase their investment by $11 billion

mpc = 0.9

gdp = ?

To find the gdp, first we have to find expenditure multiplier;

we will find that by using the formula;

expenditure multiplier = 1/(1-0.9) = 1/0.1 = 10

Now gdp = 10 x $11 billion

= $110 billion

Thus the <u>gdp is $110 billion.</u>

6 0
3 years ago
What percentage of those over the age of 75 in the united states has never married?
yan [13]
In the year 2000, the US census showed that 9.1% of those over 75 had not married so the percentage is relatively low and from 75-84 yrs old, about 50% were still married, 40% were widowed and 5.4 % were divorced.
6 0
3 years ago
A wealthy customer has been asked by his neighbor to invest in the private placement of a "start-up" technology company as a ven
Ivanshal [37]

Options:

I because these securities are not registered with the SEC, such an offering would be illegal in the United States

II because the securities are not registered with the SEC, they can only be resold in the public markets if the company effects a registered primary distribution and is current in its SEC filings

III public resale of these securities can only occur if the customer holds the securities for 6 months "at risk" and then sells the securities in measured quantities

IV these securities can only be resold by the customer to underwriters that will buy the securities into their inventory and then register them with the SEC

Answer:

II because the securities are not registered with the SEC, they can only be resold in the public markets if the company effects a registered primary distribution and is current in its SEC filings

III public resale of these securities can only occur if the customer holds the securities for 6 months "at risk" and then sells the securities in measured quantities

Explanation:

Option I is wrong because this type of operations is completely legal, and they are called private placements.

Option IV is also wrong because the underwriters do not register the stocks with the SEC, the company must be public in order for it to be registered  and their stocks publicly traded.

Option II is correct because you can privately resell the stocks, but the market is very limited.

Option III is correct because if the company does turn public, then the investor must hold the stocks for 6 months "at risk" (no puts purchased) before being able to sell them on public markets.

6 0
3 years ago
What is marketing as a source of data​
masya89 [10]

Answer:

Primary data sources include information collected and processed directly by the researcher, such as observations, surveys, interviews, and focus groups. Secondary Data Collection. Secondary data sources include information retrieved through preexisting sources: research articles, Internet or library searches, etc. Exmaple of preexisting sources modern is something named 'remarketing'. What makes remarketing different from standard Display and Search advertising which is used in a targeting collation.

Remarketing consists of using a special tracking code to place cookies on the browsers of people visiting your website, and then serving ads to those with that cookie, specifically, on the Display and Search network. It can be a very powerful component of a PPC campaign.

The main point with remarketing is that you want to find those people who have shown enough interest in your products or services to visit your website. These people are more likely to perform whatever activity you’re considering a conversion compared to people who have not yet been to your website.

Explanation:

PPC = Pay per click

3 0
3 years ago
If a firm has a required rate of return equal to the ROE, Group of answer choices the firm can increase market price and P/E by
mario62 [17]

Answer:

the amount of earnings retained by the firm does not affect market price or the P/E

Explanation:

A rate of return refers to the net gain or loss of an investment over a particular time period which is typically a year. It is expressed as a percentage of the investment's initial cost.

The rate of return is referred to as the annual return if the time period is typically a year.

If a firm has a required rate of return equal to the ROE, <u>the amount of earnings retained by the firm does not affect market price or the P/E</u>

8 0
3 years ago
Other questions:
  • Determine the (a) working capital, (b) current ratio, and (c) quick ratio. Round ratios to one decimal place.The following data
    13·1 answer
  • What was the major financial change between post-World War II borrowers and borrowers after 1970?
    14·1 answer
  • Fraudsters typically try to justify their behavior by telling themselves that they intend to repay the amount stolen or that the
    12·1 answer
  • For banquets, meals are placed on plates using a "plating belt" that moves plates past staff who place food on each plate. If pl
    11·1 answer
  • The Clyde Corporation's variable expenses are 35% of sales. Clyde Corporation is contemplating an advertising campaign that will
    6·1 answer
  • Eva, the owner of eva's second time around wedding dresses, currently has five dresses to be altered, shown in the order in whic
    6·1 answer
  • For a perfectly competitive industry with identical firms, the long-run industry supply curve is: perfectly elastic. horizontal.
    14·1 answer
  • In the Solow growth model without population growth or technological progress, if investment is greater than depreciation, the c
    15·2 answers
  • Social Security payments are indexed for inflation using the CPI. A recent newspaper editorial claimed that Social Security reci
    6·1 answer
  • ___refers to an environment in which cultural, group, and individual differences are acknowledged, accepted, and viewed as signi
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!