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Question - The Hilton Skating Club used straight-line depreciation for a used Zamboni ice-resurfacing machine that cost $52,000, under the assumption it would have a four-year life and a $6,700 trade-in value. After two years, the club determined that the Zamboni still had three more years of remaining useful life, after which it would have an estimated $4,360 trade-in value.
Required -
1. Calculate the Zamboni's book value at the end of its second year.
2. Calculate the amount of depreciation to be charged during each of the remaining years in the Zamboni's revised useful life.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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