There is no guarantee that debt will consistently remain stable or decrease to zero; this uncertainty could reduce the portion of the 20% set aside for savings and investments. Additionally, depending on the country's economic conditions, the amount required for investments might unexpectedly increase.
Answer:
2) assumption not made
Explanation:
The initial statement does not incorporate any assumptions regarding the actions of the companies concerning this issue; it merely presents a notion of equitable compensation.
It is possible that the author believes that very few or none of the companies actually provide financial compensation to homeowners for a decrease in their properties' market value, but this is not specified. The statement might also suggest that companies have previously offered compensation but are now reluctant to do so since no laws obligate them to continue. The author's stance is ambiguous and lacks clarity about the companies' current actions.
To record the depreciation expense for 2019, the journal entry includes: Debit Depreciation expense for $6,400 and Credit Accumulated depreciation for $6,400. The calculated accumulated expense for the period is established at $33,600. Depreciation represents the systematic allocation of an asset's cost, derived by the formula: Depreciation = (Cost - salvage value)/estimated life. The determined depreciation of $15,000 accumulated over a four-year duration equates to $60,000, leaving us with a net book value of $40,000. With an extended life of 5 years for the asset, the revised depreciation equates to new depreciation expenses of $6,400 to finalize the book value at the end of 2019 at $33,600.
