An asset for a production line was purchased and placed in service by a large manufacturing company. it costs $5 with a trade in of the old unit which is valued at $15000. the new asset has an estimated salvage value of $2000 at the end of an estimated useful life of 10 years. if the 200% db with a switchover to sl method is used for the depreciation, a) from which year would the switchover happen? b) what is the depreciation value in year 9?

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?

What type of stock does a large company issue?