True or False: Collaborating ethically in the workplace

A fleet of refrigerated delivery trucks is acquired on January 5, 2017, at a cost of $900,000 with an estimated useful life of 1

gavmur [86]

Answer:

depreciation expense 2017 = $180,000

depreciation expense 2018 = $144,000

depreciation expense 2019 = $115,200

Explanation:

purchase cost $900,000

estimated useful life 10 years

depreciation expense using double declining method = 2 x regular straight method depreciation rate x purchase cost

depreciation expense 2017 = 2 x 1/10 x $900,000 = $180,000

depreciation expense 2018 = 2 x 1/10 x $720,000 = $144,000

depreciation expense 2019 = 2 x 1/10 x $576,000 = $115,200

8 0

4 years ago

Hagelin Co. wants to issue new 15-year bonds for some much-needed expansion projects. The company currently has 8 percent coupon

Natasha2012 [34]

Answer:

YTM 7.02%

Explanation:

we will calcualte the YTM of the current bonds to know the market rate.

Issuing the bonds at this rate will put them at par value.

The YTM is the one which mades the future coupon payment and maturity equal to the market price.

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

Coupon payment: 1,000 x 8%/2 = 40

time 30 (15 years x 2 payment)

$40 \times \frac{1-(1+r)^{-30} }{r} = PV\\$

PV coupon

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 30.00

$\frac{1000}{(1 + r)^{30} } = PV$

PV maturity 355.24

PV coupon + PV maturity = 1,090

For maths reason the only way to solve for rate is with trial and error

we can, however use excel to do it more quickly than by hand:

we write on A1 cell 0.1

en on B1 cell: =PV(A1,30,40)

on C1 cell= 1,000/power(1+A1;1/30)

on D1 =B1+C1

What we are doing is expressing the formulas on excel

then we use goal seek on D1

w e want it on 1090 cahnging the cell A1 which is the rate

this give us the semiannual rate of :

0.035100422

we multiply by 2 to get the annual rate:

0.070200843

YTM = 7.02%

we need to issue the bond at this rate.

8 0

4 years ago

What is the effective annual rate of 11 percent compounded semi-annually?

jeka94

Im pretty sure it is 11.30 percent.

5 0

3 years ago

A country operates under a flexible exchange rate system. When the central bank lowers the interest rate during a recession, inv

MatroZZZ [7]

Answer:

decrease; increase

Explanation:

This is the case because as the central bank of that country lowers interest rate, with the goal recovering from the recession, but because the interest rate is low, the value of the country's currency (exchange rate) will decrease as a result of low investment spending.

When this occurs there will be an increase in net exports as a result of foreign demand because the prices of the country's export is now lower.

7 0

4 years ago

You have just obtained a mortgage to purchase your home. The ________ that you paid to obtain the loan are charges that must be

garik1379 [7]

Answer:

Points

Explanation:

Mortgage points or discount points are prepaid interest available when obtaining a mortgage.

When a lender charges the borrower points he is in effect increasing the yield on the loan above the interest rate agreed on the loan.

Borrowers can also offer points to the lender to obtain a reduced interest rate and reduced monthly payment in exchange for upfront payment of points.

8 0

4 years ago