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mrs_skeptik [129]
3 years ago
14

Company purchased equipment on January​ 1, 2017 for $ 600 comma 000. The residual value is $ 60 comma 000 and the estimated usef

ul life is 10 years. What is the Depreciation Expense for the year ending December​ 31, 2017, if the company uses the​ straight-line method?
Business
1 answer:
ale4655 [162]3 years ago
3 0

Answer:

$54,000

Explanation:

For computation of Depreciation Expense for the year ending 31 Dec first we need to compute the depreciation under straight line method for the year which is shown below:-

Depreciation under straight line method for the year = (Cost - Residual value) ÷ Estimated useful life

= ($600,000 - $60,000) ÷ 10

= $540,000 ÷ 10

= $54,000

Depreciation expenses = (Depreciation under straight line method for the year ÷ 12) × From Jan 1 to Dec 31

= ($54,000 ÷ 12) × 12

= $4,500 × 12

= $54,000

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5 0
3 years ago
You are analyzing an office building to determine if it make sense to build it. the building and site improvements cost $145 and
Sophie [7]

Answer:

market net operating profit per square foot = $8.80

Explanation:

total investment = $145 per square foot

the investor requires a 6% rate of return = $145 x 6% = $8.70 per square foot

total revenue per square foot =                                                      $11

proportional market vacancy and credit loss = $11 x 5% =        ($0.55)

<u>other expenses = $11 x 15% =                                                       ($1.65)  </u>

market net operating profit per square foot =                             $8.80

The project should be carried out since the net operating profit is larger than the investor's required rate of return.

7 0
4 years ago
Killian has designed a new board game for kids. His company is now figuring out who the target market is going to be and where t
VashaNatasha [74]

The correct answer is product development.

In the product development stage the company will work on things like the positioning and marketing of the new board game. Their goal is to create a need for the game and make people want to buy it.

7 0
3 years ago
Suggest the appropriate functional forms for the relationships between the following variables, and explain your reasoning, keep
Evgesh-ka [11]

Answer:

B is you answer

Explanation:

5 0
3 years ago
Steak Company acquired a building valued at $170,000 for property tax purposes in exchange for 10,000 shares of its $5 par commo
Yuliya22 [10]

Answer:

$160,000

Explanation:

Data provided in the question:

Value of the building acquired = $170,000

Number of shares exchanged = 10,000

Selling price of the stocks = $16 per share

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= 10,000 × $16

= $160,000

3 0
3 years ago
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