Thank you for visiting Bill s Wrecker Service has just completed a minor repair on a tow truck The repair cost was 760 and the book value prior to. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!
Answer :
Final answer:
The repair cost of $760 for the tow truck, with a previous book value of $4,950, was performed by Bill's Wrecker Service.
Explanation:
Bill's Wrecker Service undertook a minor repair on a tow truck, incurring a cost of $760. This cost represents the expense required to restore the vehicle to its operational state. Prior to the repair, the tow truck had a book value of $4,950, indicating its worth before factoring in any additional expenses. The repair expenditure of $760 should be considered an investment in maintaining the functionality and value of the vehicle.
To support the validity of this repair expense, it's crucial to consider the concept of book value. Book value refers to the monetary value of an asset as recorded on a company's balance sheet, which includes factors such as depreciation. The repair cost of $760 is a necessary expenditure to ensure the continued operation of the tow truck, thus preserving its value.
Furthermore, it's essential to note that the repair cost is a fraction of the book value. The repair cost represents approximately 15.35% of the initial book value, which is calculated as follows:
[tex]\[\text{Repair cost percentage} = \frac{\text{Repair cost}}{\text{Book value}} \times 100\%\][/tex]
[tex]\[\text{Repair cost percentage} = \frac{760}{4950} \times 100\% \approx 15.35\%\][/tex]
This calculation demonstrates that the repair cost is a reasonable expenditure relative to the overall value of the tow truck. Therefore, the repair performed by Bill's Wrecker Service is justified as it ensures the continued functionality and value of the vehicle.
Thank you for reading the article Bill s Wrecker Service has just completed a minor repair on a tow truck The repair cost was 760 and the book value prior to. We hope the information provided is useful and helps you understand this topic better. Feel free to explore more helpful content on our website!
- You are operating a recreational vessel less than 39 4 feet long on federally controlled waters Which of the following is a legal sound device
- Which step should a food worker complete to prevent cross contact when preparing and serving an allergen free meal A Clean and sanitize all surfaces
- For one month Siera calculated her hometown s average high temperature in degrees Fahrenheit She wants to convert that temperature from degrees Fahrenheit to degrees
Rewritten by : Jeany
