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Karo-lina-s [1.5K]
3 years ago
13

Suppose hockey skates sell in Canada for 135 Canadian dollars, and 1 Canadian dollar equals 1.004 U.S. Dollar. If purchasing pow

er parity (PPP) holds, what is the price of hockey skates in the United States?
Business
1 answer:
Katarina [22]3 years ago
4 0

Answer:

$135.54

Explanation:

Calculation for the price of hockey skates in the United States

Using this formula

Price of hockey skates=Hockey skates sale × Spot rate Ph

Let plug in the formula

Price of hockey skates= 135.00 × $1.004Ph

Price of hockey skates=$135.54

Therefore the price of hockey skates in the United States is $135.54

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Answer:

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The modified accelerated cost recovery method employees a classification-based approach to depreciating certain assets, once classified are assigned respective rates of depreciation. for example, assets classified under automobiles, trucks and machinery are treated under 5-year MACRS and will be depreciated at 20%, 32%, 19.2% and so on.

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