Funds keep percentage of their assets in corporate bonds

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Reference no: EM131923869

1. Machinery is purchased on May 15, 2015 for $120,000 with a $10,000 salvage value and a five year life. The half year convention is followed. What method of depreciation will give the highest amount of depreciation expense in year 2?

Straight line

Double declining balance

150% declining balance

Amount cannot be determined

2. True/ False- Mutual funds keep a percentage of their assets in corporate bonds because some shareholders will want to redeem their shares each day? Explain answer.

Reference no: EM131923869

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