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3 years ago

Once you purchase a house. It typically appreciates in value. Appreciation is

Business

1 answer:

Hitman42 [59]3 years ago

7 0

Answer:

Explanation:

Appreciation means that something increases in value therefore it is A.

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On October 1, 2018, Swifty Company places a new asset into service. The cost of the asset is $125000 with an estimated 5-year li

Novosadov [1.4K]

Answer:

The book value of the plant asset on the December 31, 2018 is $75,000.

Explanation:

Determine the depreciable cost,

The depreciable cost = Acquisition cost - Salvage value.

The depreciable cost = 125,000 - 30,500.

The depreciable cost = $94,500.

Determine the annual depreciation expense,

The annual depreciation expense = depreciable cost/useful life

The annual depreciation expense = 94,000/5

The annual depreciation expense = $18,900.

Find the % rate of depreciation .

The % rate of depreciation = (18,900/94,500) × 100.

% rate of depreciation = 20%

Since it is the double-declining-balance method of depreciation we multiply the % rate by 2 = 20% × 2 = 40%

Applying the rate to the carrying value of the asset to obtain current year's depreciation expense.

Current year's depreciation expense = Carrying value of the asset × the depreciation rate %.

Current year's depreciation expense = 125,000 × 40%.

Current year's depreciation expense = $75,000

4 0

3 years ago

Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?

Elenna [48]

Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?

It has low liquidity because selling would often require selling at a loss.

High volatile investments are investments that always fluctuates in the market. It can generate you very high income or very low income. It has low liquidity because when you sell it right away, you tend to sell at a loss.

6 0

3 years ago

Cosplay Unlimited sells 1,140 outfits per year at an average price of $143. The terms of the sale are 1/15, net 40. The discount

NARA [144]

Answer: c. $9,937.52

Explanation:

The Accounts receivable balance can be calculated by;

= Outfits per years * Average Price * (Collection period/365)

Collection period;

71% take the discount which means that they pay in 15 days while the rest pay in 40.

= (71% * 15) + (29% * 40)

= 22.25 days

Accounts Receivable balance = 1,140 * 143 * (22.25/365)

= $9,937.52

3 0

2 years ago

When planning a budget, the biggest consideration should be the ____?

cricket20 [7]

The answer is B-Total Recurring Monthly in which it is a constant number that you can use or track all of your recurring monthly expenses over time and its an income that a business can count on receiving every single month, and its fundamentally different than traditional businesses.

7 0

3 years ago

The rising or falling of prices that causes changes in buying power is referred to as

irga5000 [103]

Inflation is the rate at which the general level of prices for goods and services is rising and consequently the purchasing power of currency is falling. The rise or the fall of price determines the inflation rate in a given economy and therefore also determines the purchasing power by consumers. When prices goes up then there is a decrease in purchasing power of money while when the prices down there is a corresponding increase in purchasing power of money. For this reason central banks strives to limit inflation, and avoid deflation, in order to keep the economy smoothly running.

3 0

2 years ago

Read 2 more answers