Fiona's Italian Market purchased a delivery truck for deliveries for $25,000 at the beginning of 2019. The truck has an estimated life of 5 years, and an estimated residual value of $5,000. The company plans to use the straight-line depreciation method. At the beginning of 2020, the company spent $4000 to replace the truck's transmission. This resulted in a 2-year extension of useful life, but no change in residual value.
A)What type of cost is the $4,000? Explain. B)Calculate the asset's book value at the end of 2019. C)Calculate depreciation expense for 2020.
What will be an ideal response?
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Which of the following is not a role of accounting in business?
A) To provide reports to users about the economic activities and conditions of a business. B) To personally guarantee loans of the business. C) To provide information to other users to determine the economic performance and condition of the business. D) To assess the various informational needs of users and design its accounting system to meet those needs.
At the time a bond is issued, the coupon rate on the bond is set at a level that will cause:
A. the coupon rate to be equal to the yield to call on the bond. B. the market interest rate to be greater than the coupon rate of the bond. C. the yield to maturity to be less than the market yield on the bond. D. the issuing price to be equal the face (par) value of the bond. E. the market value to be greater than the maturity value of the bond.
In the U.S., the number of ethnic consumers is growing at a faster rate than the rest of the United States.
Answer the following statement true (T) or false (F)
If a bond is selling below its face value, then its yield to maturity must be less than the bond's
coupon rate. Indicate whether the statement is true or false