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vesna_86 [32]
3 years ago
6

Straight-line depreciation is the simplest depreciation method because it assumes assets lose value evenly throughout their live

s. The annual depreciation rate is 100% divided by the useful life; for example, a five-year useful life asset has an annual depreciation rate of 100%/5 = 20%. The annual depreciation expense is the depreciation rate times the depreciable cost.
A five-year asset purchased for $100,000 with an expected residual value of $10,000 has an annual depreciation expense of 0.2 x ($100,000- $10,000)_________ ' After each year, the depreciation expense reduces the depreciable basis (for example, after the first year, the depreciable basis is______
Business
1 answer:
Svetllana [295]3 years ago
7 0

Answer:

Straight-Line Depreciation Method:

A five-year asset purchased for $100,000 with an expected residual value of $10,000 has an annual depreciation expense of 0.2 x ($100,000- $10,000)__$18,000_______ ' After each year, the depreciation expense reduces the depreciable basis (for example, after the first year, the depreciable basis is__$72,000____

Explanation:

a) Data and Calculations:

Asset's acquisition cost = $100,000

Residual value = $10,000

Useful life = 5 years

Depreciation rate = 20% (100/5)

Depreciable amount or basis = $90,000 ($100,000 - $10,000)

Depreciation expense for 1st year = 0.2 x ($100,000- $10,000) = $18,000

Depreciation basis after 1st year = $72,000 ($100,000 - $10,000 - $18,000)

b) The depreciation basis of a tangible long-term asset is the amount of the asset's cost that can be depreciated over its useful life.  This amount is the acquisition cost of an asset, minus its estimated salvage value at the end of its useful life.

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You purchase one IBM July 120 put contract for a premium of $3. You hold the option until the expiration date when IBM stock sel
ZanzabumX [31]

Answer:

Loss on putting for long time = $300 (Loss )

Explanation:

Given:

Strike price = $120

Stock price = $123

Premium amount = $3 per share

Realize on investment = ?

Computation of realizing on investment:

Given that strike price is lower than the stock price, So premium paid considers as a loss.

Loss on putting for long time = $3 × 100

Loss on putting for long time = $300 (Loss )

7 0
3 years ago
Simon, the CEO of a consumer electronics firm, receives a huge positive response from the industry experts and consumers for int
Anastasy [175]

Answer:

creative

Explanation:

He could either be a humble, extroverted, born or creative leader. From these options the most intuitive answer would be that he is a creative leader given that he has introduced "breakthrough technologies" in the companies products which would only be possible through a great amount of initiative and creativity.

The term "breakthrough technologies" is the key word in answering this question as it refers to innovation that has never been seen before. Thus, it would require a great deal of creativity to think of and successfully introduce and implement into a company.

7 0
3 years ago
If an organization is committed to ethical business conduct that commitment should remain constant
Volgvan
Yes, the above statement is true. <span>If an organization is committed to ethical business conduct that commitment should remain constant. Although several firms and many employees remain constant in their ethical commitment and values, variances can happen.</span>

8 0
3 years ago
Which type of company enjoys the benefit of passing along deductions and credits of the company on to partners to file on their
Oksi-84 [34.3K]

Answer:

The correct answer is Limited Liability Partnerships.

Explanation:

A Limited Liability Company is a type of mercantile company, in which the liability is limited to the capital contributed, and therefore, in the event that debts are incurred, it does not respond with the personal assets of the partners, but to the one contributed in said Limited company. It presents as a capitalist-type society in which capital, which will be divided into social interests, will be integrated by the contributions of all partners, who will not respond personally to social debts.

Social ACTIONS are not equivalent to the actions of corporations, as there are legal obstacles to their transmission. In addition, they do not have a "value" character and cannot be represented by means of securities or account entries, and their transmission by means of the public document that will be registered in the partner register book is mandatory. It will be constituted in a public deed and subsequently in the registration of the commercial register, at which time it acquires legal personality.

3 0
3 years ago
Effective annual rate: Raj Krishnan bought a Honda Civic for $17,345. He put down $6,000 and financed the rest through the deale
g100num [7]

Answer:

EAR = 5.01%

Explanation:

Given that

APR = 4.9% = 0.049

Loan amount = initial amount - deposited amount

= 17345 - 6000

= 11,345

PV = 11345

Frequency of compounding, m = 12

Recall that

EAR = (1 + r/m)^n - 1

Thus,

= (1 + 0.049/12)^12 - 1

= 1+ 0.049/12^12 - 1

= 1.0501 - 1

= 0.0501 ×100

= 5.01%

3 0
3 years ago
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