A Firm Is Considering Purchasing Two Assets

question 5

Multiple Choice

A firm is considering purchasing two assets.Asset L will have a useful life of 15 years and cost $4 million; it will have installation costs of $750,000 but no salvage or residual value.Asset S will have a useful life of 5 years and cost $2 million; it will have installation costs of $500,000 and a salvage or residual value of $400,000.Which asset will have a greater annual straight-line depreciation?

• A)Asset L has $37,500 more in depreciation per year.
• B)Asset L has $54,167 more in depreciation per year.
• C)Asset S has $103,333 more in depreciation per year.
• D)Asset S has $37,500 more in depreciation per year.

Explain the importance and function of proteins, including antibodies, in the human body.

Describe the process and significance of condensation reactions in biology.

Identify factors that can cause protein denaturation and their effects on protein structure.

Understand the roles and properties of functional groups in organic molecules.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Average Sale Period

The average time it takes for a company to complete a sales cycle from initial contact to closing the sale.

Sales On Account

Transactions where goods are sold and delivered, but payment is delayed according to agreed terms instead of being made at the time of sale.

Cost Of Goods Sold

Direct costs associated with the assembly of products a company offers for sale, including labor and materials.