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Advocard [28]
3 years ago
7

When originally purchased, a vehicle costing $25,740 had an estimated useful life of 8 years and an estimated salvage value of $

3,100. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:
a. $5,828.00
b. $11,320.00
c. $5,660.00
d. $2.99800
Business
1 answer:
Rudiy273 years ago
4 0

Answer:

Annual depreciation= $5,660

Explanation:

Giving the following information:

Purchase price= $25,740

Salvage value= $3,100

<u>First, we need to calculate the accumulated depreciation before the change in useful life:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (25,740 - 3,100) / 8

Annual depreciation= $2,830

Accumulated depreciation= 2,830*4= $11,320

<u>Now, we can calculate the new depreciation expense:</u>

<u></u>

Annual depreciation= (25,740 - 11,320 - 3,100) / 2

Annual depreciation= $5,660

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According to OSHA standards, a competent person is defined as one who is capable of identifying existing and predictable hazards
Olin [163]

Answer:

True

Explanation:

OSHA standards are health and safety rules that an employer must put in place to ensure the safety of employees and reduce hazards in the workplace.

Different standards are applicable to different industries like the construction , maritime and other industries.

A competent person , according to the standard is one who is capable of identifying existing and predictable hazards in the surroundings , or working conditions which are unsanitary , hazardous or dangerous to employees and who has authorization to take prompt corrective measures to eliminate them.

6 0
3 years ago
City Foods, is a firm that is experiencing rapid growth. The firm just paid a dividend of $2.00 yesterday. They expect to see th
slega [8]

Answer:

The maximum that should be paid for the stock today is $45 per share.

Explanation:

To calculate the current share price or the maximum that should be paid for the stock today, we will use the dividend discount model approach.

The dividend discount model (DDM) estimates the value of a share/stock based on the present value of the expected future dividends from the stock. We will use the two stage growth model of DDM here as the growth in dividends of the stock is divided into two stages.

The formula for current price under two stage growth model is,

P0 = D0 * (1+g1) / (1+r)  +  D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n  +

[( D0 * (1+g1)^n * (1+g2)) / (r - g2)] / (1+r)^n

Where,

g1 is initial growth rate

g2 is the constant growth rate

r is the required rate of return

So, the price of the stock today will be,

P0 = 2 * (1+0.20) / (1+0.12)  +  2 * (1+0.20)^2 / (1+0.12)^2  +    

[( 2 * (1+0.20)^2 * (1+0.06)) / (0.12 - 0.06)] / (1+0.12)^2

P0 = $45

5 0
3 years ago
You plan to deposit $5,200 at the end of each of the next 15 years into an account paying 11.3 percent interest. a. How much wil
scZoUnD [109]

Answer:

Amount after 15 years = 183255.011

Explanation:

Below is the calculation to find the amount after 15 years:

Annuity amount or early deposited amount = $5200

Time period = 15 years

Interest rate = 11.3 %

Now we have to find the amount after 15 years:

Amount after 15 years = Annuity [((1 + r)^n - 1) / r ]

Amount after 15 years = 5200 [((1 + 11.3)^15 - 1) / 11.3% ]

Amount after 15 years = 183255.011

3 0
3 years ago
You would like to establish a trust fund that would provide annual scholarships of $100,000 forever. How much would you have to
aivan3 [116]

Answer:

$2,222,222.22

Explanation:

The data provided in the question

Annual scholarship provided = $100,000

Guaranteed rate of return = 4.5%

So by considering the above information, the amount i.e deposited today is

= Annual scholarship provided ÷ Guaranteed rate of return

= $100,000 ÷ 4.50%

= $2,222,222.22

By dividing the annual scholarship by the rate of return we can get the deposited amount

8 0
3 years ago
You own 10,000 shares of Microsoft stock. A good way to hedge the risk involved in owning this stock would be to buy some call o
natka813 [3]

Answer: False

Explanation:

If you want to hedge the risk of owning the stock then that would mean that you want to take measures to ensure that you don't lose out if prices fall.

A call option is not the way to do this because call options are bought with the expectations that prices will go up. If you buy call options then and the prices fall, you would make a loss on both the call options and the stock that you own.

A good way to hedge this would be to take Put options on the stock. Put options help you benefit if prices fall because you would be allowed to sell at a certain price unaffected by the fall in prices.

7 0
3 years ago
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