Company uses the straight-line method of depreciation

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1. Flint Corporation bought equipment on January 1, 2017. The equipment cost $340000 and had an expected salvage value of $25000. The life of the equipment was estimated to be 5 years. The company uses the straight-line method of depreciation. The book value of the equipment at the beginning of the third year would be

A. $214000.

B. $315000.

C. $126000.

D. $340000.

2. the standard deviation of return on investment a is 0.10 while the standard deviation of return on investment b is 0.40. if the correlation between the returns on A and B is -0.50, the covariance of rerturns on A and B is:

a) -.447 b)-.0020 c) .0020 d) 0.0447

Reference no: EM131938660

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