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7. A sport utility vehicle (SUV) sells for $34,200 and leases for $348 plus tax per month for a lease term of 24 months.
7. A sport utility vehicle (SUV) sells for $34,200 and leases for $348 plus tax per month for a lease term of 24 months. A down payment of $3500 is required. The guaranteed residual value of the vehicle is $22 126. (4 marks) a) Calculate the value of the depreciated vehicle after two years. b) How does the depreciated value of the vehicle after two years compare to the guaranteed residual value?
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a Calculating the depreciated value Cost after down payment Subtract the down payment amo...
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
