Magnotti Floors purchased a floor sander for 3,550. Delivery costs totaled 225. The salvage value is 755 after 8 years. Using the straight-line depreciation method, calculate the book value at the end of year 5.
A) 1,662.50
B) 1,887.50
C) 2,412.50
D) 935.50
Question 2
A manufacturer of computer printers offers a series discount of 20/10/5. A second manufacturer of printers offers a series discount of 25/12/10. Assuming all other aspects of the products are the same, which manufacturer would offer the best discount?
A) The 20/10/5 discount because it results in a final discount of 68.4
B) The 20/10/5 discount because it results in a final discount of 31.6
C) The 25/12/10 discount because it results in a final discount of 40.6
D) The 25/12/10 discount because it results in a final discount of 59.4
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