8. An oil company is buying a semi-submersible oil rig for $15 million. Additionally, it will cost $1.5 million to move...
8. An oil company is buying a semi-submersible oil rig for $15 million. Additionally, it will cost $1.5 million to move the oil rig to the oil-field and to prepare it for operations. If it is depreciated over five years using straight-line depreciation, what are the yearly depreciation expenses in this case?
A) $2.7 million
B) $3.0 million
C) $3.8 million
D) $3.3 million
Homework Answers
Answer is $3.3 million
While doing capital analysis, any expense that is done in order to set up the machine or initial investment is capitalized and depreciated along with the initial investment
Total investment here = $15 million + $1.5 million = $16.5 million
Per Year Depreciation = $16.5 million/5 = $3.3 million
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8. An oil company is buying a semi-submersible oil rig for $15 million. Additionally, it will cost $1.5 million to move...
An oil company is buying a semi-submersible oil rig for $15 million. Additionally, it will cost...
An oil company is buying a semi-submersible oil rig for $15 million. Additionally, it will cost $1.5 million to move the oil rig to the oil-field and to prepare it for operations. If it is depreciated over six years using straight-line depreciation, what are the yearly depreciation expenses in this case? O A. $2.5 million OB. $2.8 million OC. $3.0 million OD. $2.3 million
URGENT An oil company is buying a semi-submersible oil rig for $15 million. Additionally, it will...
URGENT
An oil company is buying a semi-submersible oil rig for $15 million. Additionally, it will cost $1.5 million to move the oil rig to the oil-field and to prepare it for operations. If it is depreciated over six years using straight-line depreciation, what are the yearly depreciation expenses in this case? O A. $2.5 million O B. $2.8 million O C. $3.0 million OD. $2.3 million
Please help! Its urgent! I keep getting 2.75 An oil company is buying a semi-submersible oil...
Please help! Its urgent!
I keep getting 2.75
An oil company is buying a semi-submersible oil rig for $15 million. Additionally, it will cost $1.5 million to move the oil rig to the oil field and to prepare it for operations. If it is depreciated over six years using straight-line depreciation, what are the yearly depreciation expenses in this case? O A. $2.5 million OB. $2.8 million OC. 53.0 million OD. $2.3 million
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JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
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An oil company is buying a semi-submersible oil rig for $15 million. Additionally, it will cost $1.5 million to move the oil rig to the oil-field and to prepare it for operations. If it is depreciated over six years using straight-line depreciation, what are the yearly depreciation expenses in this case? O A. $2.5 million OB. $2.8 million OC. $3.0 million OD. $2.3 million
URGENT
An oil company is buying a semi-submersible oil rig for $15 million. Additionally, it will cost $1.5 million to move the oil rig to the oil-field and to prepare it for operations. If it is depreciated over six years using straight-line depreciation, what are the yearly depreciation expenses in this case? O A. $2.5 million O B. $2.8 million O C. $3.0 million OD. $2.3 million
Please help! Its urgent!
I keep getting 2.75
An oil company is buying a semi-submersible oil rig for $15 million. Additionally, it will cost $1.5 million to move the oil rig to the oil field and to prepare it for operations. If it is depreciated over six years using straight-line depreciation, what are the yearly depreciation expenses in this case? O A. $2.5 million OB. $2.8 million OC. 53.0 million OD. $2.3 million
ule uue te. You may begin this assignment and Wong and there is no time limit. There is no limit on the number of attempts. Your highest This test allows multiple attempts. ultiple tempts rce mpletion This test can be saved and resumed later. Question Completion Status: → Moving to another question will save this response. Question 1 of 9 estion 1 2 points Save Answer Royal Dutch Shell PLC (RDS) is a large, multinational oil company. Its wholly owned...
Question : For Kroger footnote 1: What cost flow assumption
method does Kroger use for food? Does this match the actual flow of
goods through the stores? What is the explanation for this?
Description of Business, Basis of Presentation and
Principles of Consolidation
The Kroger Co. (the “Company”) was founded in 1883 and
incorporated in 1902. As of January 28, 2017, the Company was one
of the largest retailers in the world based on annual sales. The
Company also manufactures...
Sangria Topochico - The Capital Budgeting Decision In December 2012, María Guadalupe, the owner of Sidral Mundet Sol, had just finished reading a report done by his general manager, Francisco Javier, about the possible investment in a new product line, Sangria Topochico. The idea of Sangria Topochico came about three months earlier when María attended a seminar on youth obesity organized by a local high school that his two children attended. Even though he had often heard of the rising...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
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