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irina1246 [14]
3 years ago
12

A company purchased factory equipment for $590,000. It is estimated that the equipment will have a $59,000 salvage value at the

end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be Group of answer choices
Business
1 answer:
Rufina [12.5K]3 years ago
6 0

Answer:

($700,000 - 0) × .40 = $280,000; ($700,000 - $280,000) × .40 = $168,000 is the correct answer.

Explanation:

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Answer:

Ans. A) $9,314.45

Explanation:

Hi, first we have to bring to present value the monthly payments to be made for 30 years (360 months). In order for this to be useful, we have to convert this annua compounded monthly rate (6.25%) to an effective rate, that is 6.25% / 12 = 0.5208%. Now, when we find this present value, we are going to substract it from the price of the house and that is the value of the down payment. But let´s just go ahead and do it together.

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PresentValue=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }

It should look like this

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