Calculate the Amount to Be Received at the End of Year

question 82

Multiple Choice

Calculate the amount to be received at the end of year 1 that is equivalent to $150 at the end of year 1, $450 at the end of year 2, and $300 at the end of year 3, given a discount rate of 10%.

• A)$807
• B)$817
• C)$887
• D)$975
• E)$1,331

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Definitions:

Journal Entries

Journal entries are the basic means of recording financial transactions in the accounting system, consisting of debits and credits.

Double-declining-balance Method

An accelerated depreciation method that doubles the regular depreciation rate, allowing faster write-off of asset value.

Straight-line Method

Straight-line Method is a depreciation technique that allocates an equal amount of depreciation expense for an asset over its useful life, representing a consistent annual charge.

Book Value

Book value refers to the net value of an asset calculated as the original cost minus any depreciation, amortization, or impairment costs.