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yulyashka [42]
3 years ago
13

Suppose a company owns a warehouse that costs $500,000 and depreciates at $10,000 per year. If the interest rate is 5%, what is

the implicit rental price of the warehouse
Business
1 answer:
netineya [11]3 years ago
4 0

Answer: $35,000

Explanation:

Implicit rental price = Interest payment + Depreciation

Interest payment = 5% * 500,000

= $25,000

Implicit rental price is therefore:

= 25,000 + 10,000

= $35,000

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True or false: When units produced are less than units sold, net income under absorption costing will be less than net income co
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