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I am missing the final two values for part b. Please help if you can Gandolfi Construction Co. purchased a CAT 336DL earth mover at
I am missing the final two values for part b. Please help if you can
Gandolfi Construction Co. purchased a CAT 336DL earth mover at a cost of $435,000 in January 2019. The company's estimated useful life of this heavy equipment is 10 years, and the estimated salvage value is $86,000. Assume that Gandolfi Construction Co. calculated depreciation expense for the CAT 336DL earth mover on the straight-line method and reported $497,000 of net income for the year ended December 31, 2019. The company's average total assets for 2019 were $3,550,000. Required: a. Calculate Gandolfi's ROI for the year ended December 31, 2019. ROI Return On Investment for the year ended December 31, 2019 Choose Numerator: 1 Choose Denominator: Net income 1 Average total assets 497,000 / $ 3,550,000 ROI $ = 14.0% 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 December 31, 2019 Choose Numerator: 1 Choose Denominator: Net income 1 Average total assets 1 ROI ROI = 0Step by Step Solution
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