George buys a car on April 3 for $25,000. George estimates it has a life expectancy of 10 years with a residual value of $5,000. Using straight line depreciation, what will be the depreciation after the First year? O $5,000 O$2,000 O $2,500 O $1,500 QUESTION 3 A pair of twins were given $20,000 on their birthday in 2020. One twin purchased a car for $20,000 with a expected life of 7 years and residual value of $3,000. The other twin bought one Bitcoin. Assume straight line depreciation. If Bitcoin is now worth $60,000, how much is the difference between the book value of twin 1's car and the twin 2's bitcoin? Hint: $60,000-book value. Assume this is the end of year two for the car. O $57,571 O$44,857 O $24,857 O $17,571 QUESTION 4 Using the MACRS three-year table, how much will a $1,000 cell phone be worth after 2 years (the book value not the depreciation for year 2)?
George buys a car on April 3 for $25,000. George estimates it has a life expectancy of 10 years with a residual value of $5,000. Using straight line depreciation, what will be the depreciation after the First year? O $5,000 O$2,000 O $2,500 O $1,500 QUESTION 3 A pair of twins were given $20,000 on their birthday in 2020. One twin purchased a car for $20,000 with a expected life of 7 years and residual value of $3,000. The other twin bought one Bitcoin. Assume straight line depreciation. If Bitcoin is now worth $60,000, how much is the difference between the book value of twin 1's car and the twin 2's bitcoin? Hint: $60,000-book value. Assume this is the end of year two for the car. O $57,571 O$44,857 O $24,857 O $17,571 QUESTION 4 Using the MACRS three-year table, how much will a $1,000 cell phone be worth after 2 years (the book value not the depreciation for year 2)?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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