Gandolfi Construction Co purchased a CAT 336DL earth mover at a cost of $445,000 in January 2019 The company's estimated useful life of this heavy equipment is 10 years, and the estimated salvage value is $87,000 Assume that Gandolfi Construction Co calculated depreciation expense for the CAT 336DL earth mover on the straight line method and reported $511,200 of net income for the year ended December 31, 2019 The company's average total assets for 2019 were $3,600,000 Required a Calculate Gandolfi's ROI for the year ended December 31, 2019 b Calculate what Gandolfi's ROI would have been for the year ended December 31, 2019, had the company used the doubledeclining balance depreciation method for the CAT 336DL earth mover Ignore the effects of income taxes Gandolfi Construction Co purchased a CAT 336DL earth mover at a cost of $445,000 in January 2019 The company's estimated useful life of this heavy equipment is 10 years, and the estimated salvage value is $87,000 Assume that Gandolfi Construction Co calculated depreciation expense for the CAT 336DL earth mover on the straight line method and reported $511,200 of net income for the year ended December 31, 2019 The company's average total assets for 2019 were $3,600,000 Required a Calculate Gandolfi's ROI for the year ended December 31, 2019 b Calculate what Gandolfi's ROI would have been for the year ended December 31, 2019, had the company used the doubledeclining balance depreciation method for the CAT 336DL earth mover Ignore the effects of income taxes

Question

Gandolfi Construction Co  purchased a CAT 336DL earth mover at a cost of $445,000 in January 2019   The company's estimated useful life of this heavy equipment is 10 years, and the estimated salvage value is $87,000  Assume that Gandolfi Construction Co  calculated depreciation expense for the CAT 336DL earth mover on the straight line method and reported $511,200 of net income for the year ended December 31, 2019  The company's average total assets for 2019 were $3,600,000  Required  a  Calculate Gandolfi's ROI for the year ended December 31, 2019  b  Calculate what Gandolfi's ROI would have been for the year ended December 31, 2019, had the company used the doubledeclining balance depreciation method for the CAT 336DL earth mover  Ignore the effects of income taxes  Gandolfi Construction Co  purchased a CAT 336DL earth mover at a cost of $445,000 in January 2019   The company's estimated useful life of this heavy equipment is 10 years, and the estimated salvage value is $87,000  Assume that Gandolfi Construction Co  calculated depreciation expense for the CAT 336DL earth mover on the straight line method and reported $511,200 of net income for the year ended December 31, 2019  The company's average total assets for 2019 were $3,600,000  Required  a  Calculate Gandolfi's ROI for the year ended December 31, 2019  b  Calculate what Gandolfi's ROI would have been for the year ended December 31, 2019, had the company used the doubledeclining balance depreciation method for the CAT 336DL earth mover  Ignore the effects of income taxes

Accepted Answer

The Answer is in the image, click to view ...

Question

Gandolfi Construction Co. purchased a CAT 336DL earth mover at a cost of $445,000 in January 2019 . The company's estimated useful life of this

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question