The following information is available on a depreciable asset owned by mutual savings bank: purchase date july 1, year 1 purchase price $85,000 salvage value $10,000 useful life 10 years depreciation method straight-line the asset's book value is $70,000 on july 1, year 3. on that date, management determines that the asset's salvage value should be $5,000 rather than the original estimate of $10,000. based on this information, the amount of depreciation expense the company should recognize during the last six months of year 3 would be:

depreciation expense 4,062.5 debit

  accumulated depreciation     4,062.5 credit

Explanation:

We will do the depreciation without doing retrospective adjustement as this is new information not an accounting mistake.

book value: 70,000

change in salvage value: 5,000

depreciable ammount : book value - new salvage value:

70,000 - 5000 = 65,000 depreciable amount

useful life: 8 years

65,000 / 8 = 8.125‬

half-year depreication: 8,125 / 2 = 4,062.5

answer$225.00;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.