Depreciation

The risk-free rate used was the long-term Treasury bond rate of 9. 5% while the debt rate premium was calculated by subtracting the long-term Treasury bond rate from the long-term “AA” corporate bond rate. With Dixon’s ability to cover interest

Depreciation Schedule – Units of production Assume – cost $105 000 – residual $ 5 000 – estimated useful of 24 000 units Units Used 6 000 6 000 4 000 4 000 4 000 Depn. Charge 25 000 25

The calculation of the straight line method of depreciation is by taking the cost of the item minus its salvage value then dividing that figure by the expected year’s life cycle of the item. This is a non complex calculation

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