How much is the depreciation rate of the motorcycle if he used a straight line method to compute the depreciation? How much is the motorcycle if he plans to sell it after 3 years?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 18RQ: What is deflation?
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2. PLEASE PROVIDE CORRECT, COMPLETE, AND COMPREHENSIVE SOLUTION AND ANSWER ASAP. 

2. Josh plans to spend his 200,000.00 pesos to buy his first motorcycle and use it his
transportation business. He plans to stay in the business for 4 years and sell the
motorcycle for 50,000.00 pesos.
a. How much is the depreciation rate of the motorcycle if he used a straight line
method to compute the depreciation?
b. How much is the motorcycle if he plans to sell it after 3 years?
Transcribed Image Text:2. Josh plans to spend his 200,000.00 pesos to buy his first motorcycle and use it his transportation business. He plans to stay in the business for 4 years and sell the motorcycle for 50,000.00 pesos. a. How much is the depreciation rate of the motorcycle if he used a straight line method to compute the depreciation? b. How much is the motorcycle if he plans to sell it after 3 years?
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