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Gandolfi Construction Co. purchased a CAT 336DL earth mover at a cost of $345.000 in January 2019. The company's estimated useful life of this heavy
Gandolfi Construction Co. purchased a CAT 336DL earth mover at a cost of $345.000 in January 2019. The company's estimated useful life of this heavy equipment is 10 years, and the estimated salvage value is $77.000. Assume that Gandolfi Construction Co. calculated depreciation expense for the CAT 336DL earth mover on the straight-line method and reported $508,400 of net Income for the year ended December 31, 2019. The company's average total assets for 2019 were $3,100.000. Requlred: a. Calculate Gandolfi's ROI for the year ended December 31, 2019. Return On Investment for the year-ended December 31, 2019 Choose Numerator: Choose Denominator ROT ROI b. Calculate what Gandolfi's ROI would have been for the year ended December 31, 2019. had the company used the double- declining-balance depreciation method for the CAT 336DL earth mover. Ignore the effects of Income taxes. Retum On Investment for the year ended December 31, 2019 Choose Numerator: Choose Denominator ROI ROI =
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