Register
Satine Enterprise Ltd. Recently bought a new company car for $25 000. The firm expects to replace it in five years' time. The current market resale value of the car in five years' time is $2900. The company
151k views
5 votes
Satine Enterprise Ltd. Recently bought a new company car for $25 000. The firm expects to replace it in five years' time. The current market resale value of the car in five years' time is $2900. The company uses an annual 35% depreciation rate.

1. Use the reducing balance method of depreciation to calculate the net book value of Satine Enterprise Ltd.’s new company car after the first two years.

User Bouteillebleu
by
4.6k points

1 Answer

4 votes

Answer:

$4,420

Step-by-step explanation:

$25,000-$2,900=$22,100/5=$4,420

User The Jug
by
3.9k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

4.4m questions

5.7m answers

Other Questions

Everyone has a unique spending plan. Which of the following factors has the greatest effect on a person's spending decisions?
Stevenson Company purchased equipment for $250,000 on January 1, 2010. The estimated salvage value is $50,000, and the estimated useful life is 5 years. The straight-line method is used for depreciation.
In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his
Andrew doesn’t want to spend a lot of money on student loans, and does not qualify for grants. what is his best option for affording a bachelors degree
The method of appraisal in which the appraiser estimates the replacement cost of the building, deducts depreciation, and adds the value of the site is:________
Link Copied!