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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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Answer: unemployment rate depends solely on the size of labor force and every country has different labor force sizes.

Explanation: https://coursepivot.com/tutor-answers/which-of-the-following-helps-explain-why-it-is-so-difficult-to-compare-unemployment-rates-in-the-united-states-with-unemployment-rates-in-poorer-countriesselect-the-correct-answer-below/#:~:text=Cross-country%20comparisons%20of%20unemployment%20rates%20is%20difficult%20to,and%20every%20country%20has%20different%20labor%20force%20sizes.

4 0
3 years ago
Suppose an airline determines that its customers traveling for business have inelastic demand and its customers traveling for va
ss7ja [257]

Answer:

The correct answer is that the company should <u>charge more to the business travelers</u> and <u>charges less to the vacationers</u>.

Explanation:

To begin with, the concept called ''elasticity'', in the field of economics, refers to the variation that occurs when a change in one variable affects a change in another variable. Moreover, this concept has many applications regarding if the main subject is the supply of a product or the demand of a product.

Secondly, the <em>price elasticity of demand</em> is an elasticity application in economics that establishes the changes that occur to the demand of a product when the price changes. This elasticity could be inelastic or elastic. In addition, if the price elasticity of demand is inelastic then when the price changes the quantity demanded of that product will not change drastically while in the other hand, if the price elasticity of demand is elastic then when the price changes the quantity demanded of that product will change drastically so therefore the consumers reject the change in the price.

Finally, if the company wants to increase its total revenue then it must increase the price that charges to the business travelers and decrease the price that charges to the vacationers.

8 0
3 years ago
brutus co. exists in a world with taxes, but otherwise, capital markets are perfect. brutus co's debt cost of capital is 6%, its
FinnZ [79.3K]

Brutus co's leverage ratio is  40%

<h3>What leverage ratio?</h3>
  • The weighted average cost of capital (WACC), which includes common stock, preferred stock, bonds, and other types of debt, is the average after-tax cost of capital for a company. The WACC is the typical interest rate that a business anticipates paying to finance its assets.
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Cost of capital is 6%, its equity cost of capital is 11%, its weighted average cost of capital is 5.8% and its tax rate is 25%.

WACC = (5.8% x 25%) + (5.8% x 11% x 6%)

WACC = 3.973

WACC =   40%

Brutus co's leverage ratio is  40%

To learn more about WACC refer to:

brainly.com/question/25566972

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5 0
1 year ago
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Answer:

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Explanation:

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They include :

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Labor : all human effort expended in the production process

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4 0
3 years ago
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BabaBlast [244]
Because of the Sarbanes-Oxley act, accountants must maintain financial documents and audit work for five years.
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6 0
3 years ago
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