On october 1, 2021, holt company places a new asset into service. the cost of the asset is $120,000 with an estimated 5-year life and $30,000 salvage value at the end of its useful life. what is the book value of the plant asset on the december 31, 2021, balance sheet assuming that holt company uses the double-declining-balance method of depreciation? a. $78,000 b. $90,000 c. $108,000 d. $114,000

How can a poor housing market put home buyers in a financially unstable position? a. changing property values means it’s easier to find homes with low rental costs. b. when the home value decreases, property taxes and insurance costs increase. c. houses are valued lower than their purchase prices, so the home equity decreases. d. home buyers lose all tax benefits and tax incentives when the housing market goes down. e. mortgage payments can increase even though the home value decreases.

Guardian inc. is trying to develop an asset-financing plan. the firm has $450,000 in temporary current assets and $350,000 in permanent current assets. guardian also has $550,000 in fixed assets. assume a tax rate of 40 percent. a. construct two alternative financing plans for guardian. one of the plans should be conservative, with 70 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. the current interest rate is 12 percent on long-term funds and 7 percent on short-term financing. compute the annual interest payments under each plan.

Emil motycka is considered an entrepreneur because