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mina [271]
3 years ago
13

Novak Corp. bought equipment on January 1, 2022. The equipment cost $390000 and had an expected salvage value of $35000. The lif

e of the equipment was estimated to be 5 years. The company uses the straight-line method of depreciation. The book value of the equipment at the beginning of the third year would be
Business
1 answer:
nirvana33 [79]3 years ago
7 0

Answer:

$177,000

Explanation:

In order to find the book value of the equipment we need to find the amount of depreciation per year. To do this we need to subtract the salvage value from the initial cost and then simply divide by 5 which is the life span of the equipment...

(390,000 - 35,000) / 5 = x

355,000 / 5 = x

71,000 = x

Now we see that the equipment will depreciate by $71,000 per year. In three years the depreciation would be

71,000 * 3 = 213,000

Now we simply subtract this value from the initial cost to get the book value in the third year

390,000 - 213,000 = 177,000

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Suppose that two factors have been identified for the U.S. economy: the growth rate of industrial production, IP, and the inflat
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Answer:

11.3%

Explanation:

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Therefore, the revised estimate of the expected rate of return on the stock is 11.3%.

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