An oil company is buying a semi-submersible oil rig for $30 million. Additionally, it will...
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An oil company is buying a semi-submersible oil rig for $30 million. Additionally, it will cost $1.5 million to move the oil rig to the oil-field and to prepare it for operations. If it is depreciated over seven years using straight-line depreciation, what are the yearly depreciation expenses in this case? O A. $4.3 million O B. $5.0 million O C. $4.1 million OD. $4.5 million A small manufacturer that makes clothespins and other household products buys new injection molding equipment for a cost of $500,000. This will allow the manufacturer to make more clothespins in the same amount of time with an estimated increase in sales of 15%. If the manufacturer currently makes 65 tons of clothespins per year, which sell at $18,000 per ton, what will be the increase in revenue next year from the new equipment? O A. $176,000 OB. $75,000 O C. $157,950 OD. $175,500
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