Answer:
$10,000
Explanation:
Given that
Cost of equipment = 110,000
Salvage value = 10,000
Useful life = 5 years
Using straight line method
Depreciation = cost of equipment - salvage value ÷ useful years
= 110000 - 10000 ÷ 5
= 100000 ÷ 5
= $20000
Thus
By December 31
Entry of depreciation = 6/12 × 20000
= $10,000
Give me some time and I'll get right to it. I'm currently in school so please be patient with me. :))
<span>The "official" proven reserves number is 265 billion barrels. There's two schools of thought on that.
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PV = A*[1-(1+r)^-n]/r
A = annual payment = $100,000
r = Interest rate = 8% = 0.08
n = Number of year = 20
PV = present value of the earnings
Therefore,
PV = 100,000*[1-(1+0.08)^-20]/0.08 = $981,814.74