A company purchased new furniture at a cost of $14,000 on september 30. the furniture is estimated to have a useful life of 8 ye

lutz-heilmann.info: The company will record a depreciation of $375 as depreciation.

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We begin by calculating the depreciable value of the asset.

*

*

The depreciable value is $12,000.

The useful life of the asset is 8 years from the date of purchase.

So, the depreciation for one year will be

*
.

Hence the depreciation for one year is

*

Since the equipment was purchased at the end of September, we can only charge depreciation for 3 months on 31st December.

So, the depreciation expense will be

*




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Brestine Inc., a European multinational corporation, wants to expand its customer base and decides to target the Asian market. A

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economic differences

Explanation:

Brestine Inc. which is planning to expand its business as well as customer base by opening in a different continent which is Asia.

The foremost difficulty is the economic difference of the customer base in Asia as compared to Europe.

See more: Why Is A Protozoan Considered Animal-Like? Protists Flashcards

In Asia and most Asian countries, the per capita incomes is comparatively low. Thus, introduction of the same products that the company is marketing in Europe will not work because of the economic differences. Thus, the company has to introduce cheaper versions to appeal to the target markets which is the Asian countries.


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