Annual straight-line depreciation

Assignment Help Finance Basics
Reference no: EM131044478

A firm is considering purchasing two assets. asset A will have a usseful life of 8 years and a cost of $10 million. it will have installation costs of $400,000 and a salvage of residual of $650,000. Asset B will have a useful life of 12 years and a cost $14 million. It will have installation costs of $2 million and a salvage of residual value of $4.0 million. Annual straight-line depreciation would ____ for asset A and _____ for asset B

a) 1.00 million, 1.22 million

b) 1.17 million, 0.83 million

c) 1.22 million, 1.00 million

d) 0.83 million, 1.17 million

Reference no: EM131044478

Questions Cloud

Evaluate the organisation health safety & security systems : Using a current workplace evaluate the Organisation's health, safety & security systems. Please ensure that you include compliance with relevant WHS legislation, staff feedback, and relevant workplace reports & forms and staff consultation process
Create and support a plan for one of the 4 ps : Imagine you are developing the organic juicing company with retail stores and a franchising system in San Antonio, Texas. Create and support a plan for one of the 4 Ps
Preferred stock with a market value : ll bean has debt with a market value of 2500000 preferred stock with a market value of 2,500,000 preferred stock with a market vale of $600,000 and common stock with a market value of $5,000,000. if debt has a before-tax cost of 7%, preferred stoc..
Accounting for share capital : Prepare the journal entries to record the current tax liability and movement in the deferred tax assets and deferred tax liabilities and Prepare journal entries for Walkie Ltd between 1 July 2013 and 1 January 2017to record the above.
Annual straight-line depreciation : It will have installation costs of $2 million and a salvage of residual value of $4.0 million. Annual straight-line depreciation would ____ for asset A and _____ for asset B
Discuss the development of your ethical reasoning : This semester you have been exposed to many ethical approaches and theories, including, utilitarianism, deontologism, the rights approach, the virtue approach and natural law. Discuss the development of your ethical reasoning during the semester. ..
To what extent have your choices in life been result of free : To what extent have your choices in life been a result of free will? Given this, which theory do you agree with most and why: fatalism, determinism, or existentialism?
What is the cash flow from disposal : Derp purchases a machine for $75000. This machine qualifies as a 3 year recovery asset under MACRs with depreciation percentages as follows:
Advertisements-song lyrics-inventions : For this essay-the final essay assignment of this class-you will use a variety of resources to define your generation. To create this definition, I want you to look at works of art, books, journals, advertisements, song lyrics, inventions, article..

Reviews

Write a Review

Finance Basics Questions & Answers

  Identify risk factors inherent in estimating amount

Identify at least three risk factors inherent in estimating the amount of customer write-offs. Explain the procedural steps in which accountants or auditors would follow to identify where material misstatement of receivables.

  What will be its shortfall in cash for the month

For March, Heavenly Hotel will have cash receipts of $365,000 and cash disbursements of $370,000. If its beginning cash is $4,000 and its reserves are $3,000, what will be its shortfall in cash for the month?

  Compute the current price of the stock

The preferred stock of Easy Loan Bank pays an annual dividend of $5.60. It has a require rate of return of 8%. Compute the price of the preferred stock.

  Why is amazons cash cycle so much shorter than that of

answer length for each question one-half to one-page single-spaced. for q1 and q2 only1. why is amazons cash cycle so

  What information is provided in the balance sheet

what information is provided in the balance sheet? What is a common-sized balance sheet and how do you create one? For your final project company, My project company is Kindred Healthcare.

  Importance of financial information in hcos and its function

The importance of financial information in HCOs and its functions

  Explain the premium for taking on risk

Shortcomings of the dividend pricing models suggest that we need a pricing model that is more inclusive than the dividend models and that provides expected returns for companies based on aspects besides their historical dividend patterns.

  Determine the outside trusts prerequisite

Determine the outside trusts prerequisite for Kamath Enterprises for the year 20x8. How ought to the organization raise its outside trusts prerequisite, if the accompanying confinements apply?

  Use uniform payment method

Your friend is considering buying a patio heater for her pub. She thinks that she can extend her patio season by several weeks and make more money. The patio heater costs $2000 but will increase beer profits by $525 per year. If the patio heater has ..

  Should the individual trade at the offer or bid rate

Evaluate if the individual sells the forward would rate would he receive from a bank for one year forward rate (Show the calculation for the forward rate and Should the individual trade at the offer or bid rate?

  What was the total cost to the firm of issuing the security

The firm's stock price increased 17 percent on the first day of trading. What was the total cost to the firm of issuing the securities?

  Liability concerns and payments to investors

Distinguish between a master limited partnership and a private limited partnership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd