(a) State the difference between book value and market value. (b) Describe a condition under which they will have significantly different values.

What will be an ideal response?


(a) Book value is the remaining capital investment after depreciation charges have been
subtracted. Market value is the amount of money that can be realized if the asset is sold
on the open market.
(b) A hi-tech computer workstation may have a market value that is much lower than its
book value due to rapidly advancing technology.

Trades & Technology

You might also like to view...

TEXTEDIT can be used to change:

a. text height b. text location c. text content d. text style

Trades & Technology

Which of the following is NOT true of magnetic fields?

A. unlike poles attract B. flux lines exit from the north pole C. flux lines enter the south pole D. flux density is lowest at the poles

Trades & Technology

You expect to contribute to an investment fund for your retirement over the next 30 years with an annual deposit of a yet-to-be determined amount. Assume your goal is to have $2 million available when you stop the annual deposits and that the fund is able to return 10% per year every year.

(a) Determine if you will reach your goal for either of the following two deposit scenarios: (1) $12,000 each and every year; (2) $8000 at the end of next year for 15 years, followed by $15,000 deposits in each of years 16 through 30. (b) Determine the exact number of years neces­sary to accumulate the $2 million if $12,000 is deposited each year until the goal is achieved. (c) For a little more of a challenge, use only the FV function to determine the number of years necessary to attain the $2 million goal for the second deposit scenario, assuming the $15,000 is deposited annually until the goal is achieved.

Trades & Technology

A 240/2400 V (rms) step-up ideal transformer delivers 50 kW to a resistive load. Calculate: (a) the turns ratio, (b) the primary current, (c) the secondary current.

What will be an ideal response?

Trades & Technology