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Gandolfi Construction Co. purchased a CAT 336DL earth mover at a cost of $395,000 in January 2019. The company's estimated useful life of this heavy

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Gandolfi Construction Co. purchased a CAT 336DL earth mover at a cost of $395,000 in January 2019. The company's estimated useful life of this heavy equipment is 20 years, and the estimated salvage value is $82,000. Assume that Gandolfi Construction Co. calculated depreciation expense for the CAT 336DL earth mover on the straight-line method and reported $582,900 of net Income for the year ended December 31, 2019. The company's average total assets for 2019 were $3,350,000 Required: 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 Net income Average total assets 582.000 3.350,000 = 3 17.4% 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. Return On Investment for the year ended Desember 31, 2019 Choose Numerator: Choose Denominator: huet income Average total assets

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