Gulf consulting co. reported the following on its december 31, 2021, balance sheet: equipment (at cost) $700,000 in a disclosure note, gulf indicates that it uses straight-line depreciation over five years and estimates salvage value as 10% of cost. gulf's equipment averages 3.5 years at december 31, 2021. what is the book value of gulf's equipment at december 31, 2021?

$259,000

Explanation:

Data provided in the question:

Cost of equipment = $700,000

Useful life = 5 years

Salvage value = 10% of cost

= 0.10 × $700,000 = $70,000

Now,

Annual depreciation = [Cost - salvage value] ÷ Useful life

= [$700,000 - $70,000 ] ÷ 5

= $126,000

Therefore,

The depreciation expense till December 31, 2021

= Annual depreciation × Life elapsed

= $126,000 × 3.5

= $441,000

Thus,

Book value of Gulf's equipment at December 31, 2021

= Cost - depreciation expense

= $700,000 - $441,000

= $259,000

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

answer; i do believe that the correct answer is ; ///are valued more highly than their cost;