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Helen [10]
3 years ago
9

Clayton, inc. purchased a van on january 1, 2016, for $850,000. estimated life of the van was five years, and its estimated resi

dual value was $91,000. clayton uses the straight-line method of depreciation. at the beginning of 2018, the company revised the total estimated life of the asset from five years to four years. the estimated residual value remained the same as estimated earlier. calculate the depreciation expense for 2018.
a.$227,700
b.$113,850
c.$136,600
d.$273,200
Business
1 answer:
Lilit [14]3 years ago
3 0
A) 227,700
Depreciation per year = (Cost - Residual value) / Useful life
Depreciation per year = ($850,000 - $91,000 ) / 5 = $151,800
Depreciation provided in the books = $151,800 Ãâ€" 2 years = $303,600
<span>Revised depreciation for the year 2018 = ($850,000 - $303,600 - $91,000 ) / 2 = $227,700</span>
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Answer:

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3 0
4 years ago
Hailey Corporation pays a constant $9.45 dividend on its stock. The company will maintain this dividend for the next 13 years an
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Answer:

$64.76

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Present value can be calculated using a financial calculator

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To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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