Answer:
The answer is $48,000
Explanation:
To determine the percentage rate to be used: 100percent /5 years
=20percent.
So doubling 20percent equals 40percent(This is the rate to be used).
Depreciation for Year 2016:
0.4 x $75,000
=$30,000
New Net book value = $75,000 - $30,000
= $45,0000
Depreciation for Year 2017:
0.4 x $45,000
=$18,000
Therefore, accumulated depreciation by the end of 2017 is
$30,000 + $18,000
=$48,000
Obviously, it becomes half so it'll be 10%
Forgive me if its wrong. im answering as best as i can.
Answer:
c. planned investment spending is most likely to decrease.
Explanation:
High interests rates reduce the levels of investment in an economy. Investments are capital intensive ventures and will require borrowing to finance them. When interest rates are high, loans become expensive. For a project to be viable in times of high-interest rates, it will need to have a very high rate of return.
When interest rates are high, banks will offer a higher rate of return on savings. Using savings to finance investments become more costly. Investors would prefer to put their money in a deposit account for higher interest payments than to invest.
High-interest rate thus slows down investments expenditures. The cost of borrowing goes up while the incentives to save increase.
