Answer:
by eliminating the effects of price increases on GDP growth
Explanation:
To correct for an increase in prices, economists establish a set of constant prices by choosing one year as a base year and using this base year to calculate real GDP for other years.
Sadie is a reporter who has researched an in-depth article about the prevalence of mercury found in local fish. During her investigation she finds that although a few fish have been caught with high levels of mercury, for the most part, they are rare. Considering that Sadie’s organization needs to sell ad space, which title will she MOST likely pick for this article?
A.
No Cause for Alarm with Local Fish
B.
Few Fish Affected by Mercury, Study Finds
C.
Mercury Levels Not an Issue Here
D.
Toxic Ingredients in Local Seafood
The title that Sadie is most likely to pick for the article, considering that her organization needs to sell ad space, is B. Few Fish Affected by Mercury, Study Finds.
Why is the title appropriate ?The title of Sadie's investigation accurately portrays the rarity of local fish with high mercury levels. It puts forward an optimistic perspective by emphasizing the low incidence of mercury within these aquatic species, possibly sparking interest from advertisers and readers.
However, choosing option A which says No Need to Worry About Local Fish, may undermine concerns related to mercury poisoning risks in fish, hindering engagement from people and marketers alike.
Find out more on titles at https://brainly.com/question/26677641
#SPJ1
Hardy Company must maintain a compensating balance of $50,000 in its checking account as one of the conditions of its short-term 6% bank loan of $500,000. Hardy's checking account earns 2% interest. Ordinarily, Hardy would maintain a $20,000 balance in the account for transaction purposes. What is the loan's approximate effective interest rate
Answer:
The loan's approximate effective interest rate is 6.17%.
Explanation:
Interest expense = Short term bank loan * Short term bank loan interest rate = $500,000 * 6% = $30,000
Interest income = Balance in the account checking account * Interest rate on checking account balance = $20,000 * 2% = $400
Net interest expense = Interest expense - Interest income = $30,000 - $400 = $29,600
Available amount = Short term bank loan interest rate - Balance in the account checking account = $500,000 - $20,000 = $480,000
Effective interest rate = Net interest expense / Available amount = $29,600 / $480,000 = 0.0617, or 6.17%
Therefore, the loan's approximate effective interest rate is 6.17%.
2. Review EOH 2021 Integrated Report and explain in a few words if the strategy has been implemented and is working or not.
The EOH 2021 Integrated Report covers the area of EOH policies and programme in the area of social and economic development, and others.
What was the reporting of EOH 2021 about?The reporting of EOH 2021 was one that focused on:
SustainabilityDiversity and inclusion, Ethical culture Employee wellnessIn the workings of the business, the report stated that the company make sure that employees were assisted in one way or the other.
Conclusively, EOH was said to have complied with the key environmental, social and governance rules and regulations that is required for reporting as they were guided by Global Reporting Initiatives (‘GRI’) Standards.
Learn more about Integrated Report from
https://brainly.com/question/17149546
#SBJ1
The quantity theory of money states
that MV = PQ.
Given:
M= 30
V = 50
P = 10
What value would "Q" need to be to balance
the equation?
A. 50
B. 100
3. 150
Answer:
3. 150
Explanation:
Substitute the letters for the numbers and solve.
MV = PQ=
30×50 = 1500
10 × 150 = 1500
Q= 150
Speaking effectively, writing concisely, and listening attentively are all examples of the transferable skill of
communication
human relations
organization, management, and leadership
research and planning
Answer: communication
Answer:
Its communication and i am 100% possitive ive took the test.
Explanation:
When the economy is in a decline this is referred to as a
Answer:
RecessionExplanation:
According to economists ;
A recession is a macroeconomic term that refers to a significant decline in general economic activity in a designated region.
what's an opportunity cost?
Answer:
opportunity cost is the loss or the benefit that could have been enjoyed if the best alternative choice was chosen. As a representation of the relationship between scarcity and choice, the objective of opportunity cost is to ensure efficient use of scarce resources.
Explanation:
State for each account whether it is likely to have debit entries only, credit entries only, or both debit and credit entries. also, indicate its normal balance.
Typical Entrees Normal Balance
1. Accounts Payable -
2. Cash -
3. Dividends -
4. Miscellaneous
5. Insurance Expense
6. Fees earned
Answer:
Explanation:?
A pharmaceutical company owns all of the marketable medicines for a disease. Due to the critical nature of the disease, and their market monopoly, they are able to charge extremely high prices for the drug. The shareholders are delighted with their returns but the CEO faces a(n) ________ every day.
Answer:
Ethical dilemma
Explanation:
The CEO experiences an ethical dilemma every day as he charges customers more depending on the actions of the company and the need for CEOs and the market value that the company so that here Due to the critical nature of the disease correct answer is CEO faces a(n) Ethical dilemma every dayShe wants a career that lets her travel to different companies and show workers there how to use complex software. Which term BEST describes Mara’s career goal? team-building specialist external trainer internal trainer cohesion specialist
The term that describes Mara’s career goal is to be an external trainer. Option (b) is correct.
What do you mean by cohesion specialist?Plan social cohesion activities centered around your neighborhood, ensuring the use of Do No Harm and conflict-sensitive strategies is a Cohesion specialist.
External training is distinguished by the possibility that the instructors have more extensive training backgrounds and more in-depth theoretical and practical knowledge. Employees can get a different perspective and learn about new methods thanks to external training, which also brings ideas from outside the organization.
Therefore, Option (b) is correct.
Learn more about cohesion specialists, here;
https://brainly.com/question/29598400
#SPJ9
Social media experts suggest that you use other means of communicating claims or complaints before turning to social media. Messages received through other channels are more likely to be addressed by the business, and social media presents a higher risk of your message getting into the wrong hands or becoming a legal issue. However, if you do use social media to convey a complaint or review, you should adhere to some basic guidelines. Which tips should you follow when posting a complaint or review online? Check all that apply.
a. Offset criticism with positives.
b. Do not include suggestions or negative comments in positive reviews.
c. Make your comment clean, polite, and to the point.
d. Ignore a business’s offer to discuss your post.
e. Refuse payment for positive comments.
The tips that one should follow when posting a review or complaint online are:
a. Offset criticism with positives.c. Make your comment clean, polite, and to the point.What should you do with online reviews and complaints?You are allowed to give criticisms but these would be better if they came with the positive things the company did as well.
You should also keep your comment free of profanity, polite, and straight to the point instead of lengthy so that your issue can be dealt with easily.
In conclusion, options A and C are correct.
Find out more on how to criticize at https://brainly.com/question/2947946.
Match the vocabulary word with the correct definition
system for gathering and organizing marketing
information used in decision-making
specific actions which advance the strategy and achieve
an end result
specific, measureable, short-term expectations
objectives
goals
broad, long-term expectations for future achievements
structured research which uses the scientific method and
standardized questions to make generalizations and
predictions, includes questionnaires, surveys and
experiments
statements describing the overall approach to how goals
and objectives will be achieved
:: marketing information system
:: quantitative research
:: strategies
:: tactics
Answer:
e 552gbrbrnrbthrjhhbbb vt to o
From the case Ford Hybrid Car Case, by ARVIND RANGASWAMY
Develop forecasts of hybrid car penetration in the U.S. market from 2007 through 2016 for each scenario you develop, along with a justification and explanation for your forecasts. (In applying the Bass model, note that market penetration data for the three analog products mentioned in the case, namely, ABS, EFI, and Diesel cars, were all reckoned in terms of the percentage of the target market that adopted the product. Thus the maximum market potential can at most be equal to 100).
The forecasts of hybrid car penetration in the U.S. market from 2007 through 2016 for each scenario are Optimistic, Pessimistic and Realistic.
Scenario 1: Optimistic
In this scenario, I assume that the following factors will contribute to the growth of the hybrid car market:
Increasing awareness of the environmental benefits of hybrid carsGovernment incentives for purchasing hybrid carsContinued improvement in the performance and affordability of hybrid carsBased on these factors, I forecast that the market penetration of hybrid cars in the U.S. will reach 10% by 2016.
Scenario 2: Pessimistic
In this scenario, I assume that the following factors will hinder the growth of the hybrid car market:
High price of hybrid carsLack of charging infrastructureConsumer resistance to changeBased on these factors, I forecast that the market penetration of hybrid cars in the U.S. will reach only 5% by 2016.
Scenario 3: Realistic
In this scenario, I assume that the following factors will influence the growth of the hybrid car market:
A combination of the factors in the optimistic and pessimistic scenariosBased on these factors, I forecast that the market penetration of hybrid cars in the U.S. will reach 7% by 2016.
For such more question on Optimistic:
https://brainly.com/question/31875171
#SPJ8
2. Describe the environment facing Chief Wearing in terms of leader-member relations, task structure, and position power. Using Fiedler's model, what leadership style do you think is most appropriate given the situation you just described? Does this style match Chief Wearing's?
Chief Wearing should adopt a delegative leadership style would be best for this situation as there is a division of work.
A delegative leadership style known as "laissez-faire" emphasizes delegating initiative to team members. Most people consider this to be one of the least intrusive types of leadership; this means "let them do" in English. As a result, it is regarded as a very hands-off leadership style.
This kind of leader relies on their employees to do their jobs and has trust in them. They don't micromanage and don't get too involved in giving advice or feedback. Delegative leaders, on the other hand, allow employees to use their experience, resources, and creativity to achieve their objectives.
If team members are competent and take responsibility for their work, this strategy for leadership can work. Delegative leadership, on the other hand, has the potential to divide a group and cause disagreements among team members.
to learn more about delegative leadership style,
https://brainly.com/question/10133550
Identify what constitute the combination of traits, which result from the interaction of genes and environment.
O personality
O locus of control
O ethnocentrism
O perception
Answer:
Personality
Explanation:
the combination of traits, which result from the interaction of your genes and your environment, they constitute your personality.
The personality from the interaction of genes and environment.
What is combination of traits?It could involve anything from managing a team of people to swaying opinions and guiding an organization's development.
Whatever your personal definition of leadership may be, we can all agree on one thing: Great leaders regularly exhibit certain characteristics as opposed to mediocre ones.
Effective leaders play a critical role in ensuring that people are inspired, engaged, and properly prepared to provide their best work at all levels of a business.
Therefore, The personality from the interaction of genes and environment.
To learn more about personality, refer to the link:
https://brainly.com/question/14038147
#SPJ2
Advertisements masquerade as media content by
A. persuading us to buy a product.
B. breaking crucial news stories.
C. being entertaining and funny.
D. selling us beauty products.
Answer:A
Explanation:
Persuading is a way to attracter customers
The Crash Davis Driving School has an ROE of 14.5 percent and a payout ratio of 44 percent. What is its sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Assuming the Crash Davis Driving School has an ROE of 14.5 percent and a payout ratio of 44 percent. Its sustainable growth rate is:8.84%.
First step
b=1-payout ratio
b = 1 - .44
b = .56
Second step
Sustainable growth rate = [(ROE)(b)] / [1 - (ROE)(b)]
Sustainable growth rate = [.145(.56)] / [1 - .145(.56)]
Sustainable growth rate=0.0812/(1-0.0812)
Sustainable growth rate=0.0812/0.9188
Sustainable growth rate=0.0884×100
Sustainable growth rate=8.84%
Inconclusion Its sustainable growth rate is:8.84%.
Learn more about sustainable growth rate here:https://brainly.com/question/14831450
For the same monopolist firm as in the previous question, what is the price that the monopoly chooses to set to go along with its quantity choice
Hi, you've asked an incomplete question. However, I provided some explanation about what monopoly entails.
Explanation:
Note that the term monopoly basically refers to a market environment in which an entity or enterprise is the only producer of a particular commodity.
In such a situation, the monopolist firm has a market advantage of being able to choose what price to sell its products without been concerned about the price of the competitor's products.
On January 1, 2025, Indigo Company makes the two following acquisitions. 1. Purchases land having a fair market value of $900,000 by issuing a 5-year, zero-interest-bearing promissory in the face amount of $1,262,297. 2. Purchases equipment by issuing a 5%, 9-year promissory note having a maturity value of $350,000 (interest payable annually on January 1). The company has to pay 7% interest for funds from its bank. (a) Record the two journal entries that should be recorded by
The two journal entries that that should be recorded by Indigo Company for the two purchases on January 1, 2025 is -
No. Date Account Titles and Explanation Debit Credit
(a)1. Jan 1, 2025 Land $900,000
Discount on Notes Payable $362,297
Notes Payable $1,262,297
2. Jan 1,2025 Equipment $304,408
Discount of notes payable $45,592
Notes payable $350,000
What is a journal entry?A journal entry is the act of keeping or making records of any economic or non-economic transaction. An accounting journal, which shows a company's debit and credit balances, records transactions.
The calculation of value of equipment is as follow:-
Present value of $350,000 due in 9 years at 7%
PV = C/(1+i)^n
= $350,000/(1+0.07)^9 = $190,383
And $350,000 ×5% = $17,500
Present value of $17,500 payable annually for 9 years at 7% annually.
PV of Annuity = P[1-(1+r)^-n/r]
= $17,500[ 1-(1+0.07)^-9/0.07]
= $114,025
The journal entry for recording the interest is :-
No. Date Account Titles and Explanation Debit Credit
b. 1. Dec.31,2025 Interest expense(90000*7%) $63,000
Discount on Notes Payable $63,000
2. Dec.31,2025 Interest Expense(304408*7%) $21,308
Discount on notes payable $3,808
Cash ($350,000*5%) $17,500
Therefore, the amount for equipment ( present value of notes) is $304,408 ($190,383 +$114,025), and the discount on notes payable is $45,592.
To learn more about journal entry, click here:
https://brainly.com/question/20421012
#SPJ9
Your question is incomplete, but most probably the full question was,
On January 1, 2025, Indigo Company makes the two following acquisitions. 1. Purchases land having a fair market value of $900,000 by issuing a 5-year, zero-interest-bearing promissory in the face amount of $1,262,297. 2. Purchases equipment by issuing a 5%, 9-year promissory note having a maturity value of $350,000 (interest payable annually on January 1). The company has to pay 7% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Indigo Company for the two purchases on January 1, 2025. Record the interest at the end of the first year on both notes using the effective-interest method. (b) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g 58,971. if no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation No. Date Debit Credit a) 1 January 1, 2025 2. January 1,2025December 31 2025 (b) 1. December 31 2025 2.
The operational improvement cycle is referred to as the: a. 5S cycle b. FMEA cycle c. DMAIC cycle d. Generate - Integrate - Interpret - Act cycle
Answer:
The operational improvement cycle is referred to as the:
c. DMAIC cycle
Explanation:
The DMAIC cycle involves continuous operational improvement. The 'D' stands for 'to define' the process. The 'M' stands for ' to measure' or quantify the performance process. The 'A' stands for ' to analyze' performance to determine root causes. The 'I' stands for 'to improve; the process. The 'C' stands for control to achieve benefits. These processes are the Sigma Six improvement processes that have been proven to yield improved organizational processes.
1.Explain where the market equilibrium occurs.
2.How do we show equilibrium graphically?
3.Share an example from your own experience when the market was not in equilibrium for a product or service.
4.Explain why the market was out of equilibrium (what caused it to be out of equilibrium) and what needed to be done to bring the market back to equilibrium.
Answer:
because they are well known
A manager paid on a salary basis
Group of answer choices
Exempt
Nonexempt
Minimum wage
Option (c), A supervisor who is compensated on a salary basis with minimum wage.
What is the bare minimum wage that may be earned in a job?The minimum wage is the lowest amount of money that an employer is required to pay wage earners for work completed within a specific time period and that is not subject to negotiation in a collective bargaining agreement or a contract between two parties.
What do wages and salaries signify in compensation management?Wage and salary management is the procedure of deciding on pay and payment structures and levels in corporate environments. The difference between wages and salaries is that salaries are equal payments that are specified in weekly, monthly, or yearly rates, whereas wages are remuneration for labor services that are often provided and are expressed as hourly rates.
Learn more about minimum wage: https://brainly.com/question/25863464
#SPJ1
a perpetuity pays 230 per year and interest rates are 7.2 percent. How much would its value change if interest rates increased to 8.7 percent?
The difference between the current value and the new value is $550.76 ($3,194.44 - $2,643.68). This means that if interest rates were to increase to 8.7 percent, the value of the perpetuity would decrease by $550.76.
A perpetuity is an investment that pays a fixed amount of money each year, indefinitely. In this case, the perpetuity pays $230 per year, and the current interest rate is 7.2 percent.
To calculate the current value of the perpetuity, we can use the formula: value = annual payment / interest rate. So, the current value of the perpetuity would be $3,194.44 ($230 / 0.072)
If interest rates were to increase to 8.7 percent, the value of the perpetuity would decrease. We can calculate the new value using the same formula: value = annual payment / interest rate. Using an interest rate of 8.7 percent, the value of the perpetuity would be $2,643.68 ($230 / 0.087)
It's important to note that this calculation assumes that the annual payment of $230 will remain constant. In reality, it's possible that the payment could change if interest rates were to fluctuate significantly.
For more such questions on current value visit:
https://brainly.com/question/15904086
#SPJ11
Marvin, the vice president of Lavender, Inc., exercises a stock option to purchase 100 shares of stock in March 2020. The stock options are incentive stock options (ISOs). Their exercise price is $20 and the fair market value on the date of exercise is $28. The options were granted in March 2016 and all restrictions on the free transferability had lapsed by the exercise date.
a. If Marvin sells the stock in December 2020 for $3,000, his AMT adjustment in 2020 is a positive adjustment of $800.
b. If Marvin sells the stock in December 2020 for $3,000, his AMT adjustment in 2020 is $0.
c. If Marvin sells the stock in December 2020 for $3,000, his AMT adjustment in 2020 is a negative adjustment of $800.
d. If Marvin sells the stock in December 2021 for $3,000, his AMT adjustment in 2021 is a negative adjustment of $1,000.
Answer:
None of the answer is correct.
Explanation:
When Marvin purchase stock in March 2020 at a price of $28. The exercise price for the stock is $20. When Marvin will sell the stock at the exercise price he will gain on the sale of the stock. AMT is the difference or spread between the stock exercise price and its underlying fair market value.
The Backwoods American company in Problem 2.1 produces approximately 20,000 parkas annually. The quality management program the company implemented was able to improve the average percentage of good parkas produced by 2% each year, beginning with 83% good-quality parkas in 2012. Only about 20% of poor-quality parkas can be reworked.
Total (not per parka) direct manufacturing cost is given below:
Year 2003 2004 2005 2006 2007
Direct Manufacturing Cost $420,900 $423,400 $424,700 $436,100 $435,500
A) Compute the product yield for each of the five years.
B) Using a rework cost of $12 per parka, determine the manufacturing cost per good parka for each of the five years. What you can you conclude about the improvement process?
Answer:
a. 2003 product yield = 20,000(0.83) + 20,000 (1 - 0.83)(0.20)
= 16,600 + 680
= 17,280 parkas
2004 product yield = 20,000*(0.85) + 20,000*(0.15)(0.20)
= 17,000 + 600
= 17,600 parkas
2005 product yield = 20,000*(0.87) + 20,000*(0.13)(0.20)
= 17,400 + 520
= 17,920 parkas
2006 product yield = 20,000*(0.89) + 20,000*(0.11)(0.20)
= 17,800 + 440
= 18,240 parkas
2007 product yield = 20,000*(0.91) + 20,000*(0.09)(0.20)
= 18,200 + 360
= 18,560 parkas
b. 2003 manufacturing cost per good parka = 420,900 + 12*(20,000)(0.17)(0.20) /17,280
= 420,900 + 12 (680) / 17,280
= 429,060 /17,280
= $24.83
2004 manufacturing cost per good parka = 423,400 + 12*(600) /17,600
= 430,600 /17,600
= $24.47
2005 manufacturing cost per good parka = 424,700 + 12*(520) / 17,920
= 430,940 /17,920
= $24.05
2006 manufacturing cost per good parka = 436,100 + 12*(440) / 18,240
= 441,380 /18,240
= $24.20
2007 manufacturing cost per good parka = 435,500 + 12 *(360) /18,560
= 439,820 / 18,560
= $23.70
The opportunity cost of going to college is
The opportunity cost of going to college is the cost of tuition, any associated costs, and any income, experience, to add on to other college expenses.
What is opportunity cost?
The potential profit lost from a missed chance is referred to as the “opportunity cost” and is the result of selecting one option over another.
The opportunity cost of the college are tuition, room, books, foods, dress, footwear, and other expenses are also included. The opportunity cost is always increases.
As a result, the opportunity cost are to go to the college as tuition fees, books, rent on hostel, and food etc.
Learn more about on opportunity cost, here:
https://brainly.com/question/13036997
#SPJ1
Incorrect
Question 3
0/5 pts
(01.01 MC)
Tina just completed a science degree and wants to continue on to medical
school. What can she expect?
-Her earnings potential may decrease.
-Her potential expenses may decrease
-Her earnings potential may increase.
-Her potential wants may decrease.
Answer:
Her earning potential may INCREASE
Explanation:
Tina just completed a science degree and wants to continue to medical school. Her earnings potential may increase. Hence, option C is appropriate.
What is the earnings potential?Earning potential is the phrase used to describe the potential profits that shareholders may realize from holding a company, including dividend payments but also capital growth. In plenty of other words, it displays the most profit that a business may get. The manner of dividends is frequently distributed to investors.
The formula can also be thought of as predicted revenue with fewer expenses equaling profit potential. Gross margin %, also known as the ratio of profit to sales, is a metric that businesses use to assess the profitability of various products.
Let's start with the definition of earning potential (income potential): this is the sum of money you should be able to accumulate throughout a certain period. In other regards, this is a reference to your potential for financial gain.
Hence, option C is correct.
Learn more about the Earnings Potential here:
https://brainly.com/question/29644125
#SPJ2
Should internet service providers be required to provide service to all customers and be treated and regulated as monopolies similar to electric companies?
(Give a well thought out answer and ill give brainliest)
There are several factors to consider but in general, internet service providers be required to provide service to all customers and be treated and regulated as monopolies similar to electric companies.
Why should internet service providers provide service to all customers?Requiring internet service providers (ISPs) to provide service to all customers and regulating them as monopolies similar to electric companies could potentially lead to increased access to reliable and affordable internet for all individuals, regardless of their location or economic status. This could help bridge the digital divide and ensure that everyone has access to essential services and opportunities, such as education, healthcare, and employment.
Some argue however, that the regulation of ISPs as utilities could lead to government overreach and limit the ability of ISPs to innovate and adapt to changing technologies and consumer demands.
Find out more on internet service providers at https://brainly.com/question/18000293
#SPJ1
Suppose that you purchased your home in 2014 and believe that, based upon recent
comparable home sales in your vicinity, your home has a market value of $675,000. You
decide to put your home on the market for $720,000 to allow room for future negotiation
towards your desired selling price of $675,000. After several days, you receive a text
message from your broker informing you that prospective buyers have been balking at
making you an offer as they have seen that Zillow is valuing your house online for only
$600,000. Explain whether you have a right to sue Zillow and, if so, under what liability
law(s).
Zillow, a popular online real estate database and marketplace, provides estimates of home values through its proprietary Zestimate tool. However, in the case where a seller disagrees with Zillow’s valuation of their property, the seller does not have the right to sue Zillow, and there are no legal grounds for a lawsuit.
In addition, the seller voluntarily uses the tool to estimate their property's worth. Although Zillow uses a complex algorithm that considers various factors to determine the value of a property, the tool is not perfect, and its estimates can be incorrect. A home’s value depends on various factors, including location, condition, recent sales prices of comparable homes in the area, and market trends. It is essential to note that Zillow’s Zestimate tool does not physically visit homes, and, therefore, may not be able to factor in some critical variables affecting the value of a property.
As a result, Zillow's online estimates should be used only as a starting point for determining the property's value. Ultimately, the actual value of the property will be determined by the final price a buyer is willing to pay, the seller’s selling price, and the current market conditions. Therefore, it is essential to get a professional appraisal to get an accurate valuation of the property. In conclusion, a seller does not have the right to sue Zillow as there are no grounds for a lawsuit.
Know more about Online real estate here:
https://brainly.com/question/30087960
#SPJ8
On January 1, the Matthews Band pays $65,800 for sound equipment. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $2,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a total of three years. The salvage value is not changed.
Answer:
$15,950
$15,950
Explanation:
Here is the full question :
On January 1, the Matthews Band pays $65,800 for sound equipment. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $2,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a total of three years. The salvage value is not changed. Compute the revised depreciation for both the second and third years.
The step to answering this question :
1. calculate the depreciation expense using the initial useful life
2. calculate the book value for year 2
3. calculate the depreciation expense for year 2 and 3 using the revised useful life and year 2 book value
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
1. ($65,800 - $2000) / 4 = $15,950
Book value = $65,800 - $15,950 = $49,850
($49,850 - $2000) / 3 = $15,950
The depreciation expense in year 2 and 3 would be $15,950