worth $10 million in 2022. Middle of the year the company purchased car costing $3 million by cash and IT infrastructure $2 million by cash as well. The office building generates rent revenue of $60 million and incurred operating expenses of $40 million. Additional expenses paid during the year is marketing cost $3 million and administration expenses $2 million. The company also make an investment of $20 million at the end of the year and paid corporation tax amounted to $1 million. The company write off some assets which resulted in losses on disposal of $0.5 million at the end of the year. All assets are depreciated using the straight-line method with the office building a useful life of 40 years and 10 years for office equipment. The useful life of the car is 8 years and IT infrastructure is 5 years. All of the assets will salvage value of 10% for its original cost.
MOODY Company invested $300 Million in cash equity investment and purchase an office building worth $200 million and office equipment worth $10 million in 2022. Middle of the year the company purchased car costing $3 million by cash and IT infrastructure $2 million by cash as well. The office building generates rent revenue of $60 million and incurred operating expenses of $40 million. Additional expenses paid during the year is marketing cost $3 million and administration expenses $2 million. The company also make an investment of $20 million at the end of the year and paid corporation tax amounted to $1 million. The company write off some assets which resulted in losses on disposal of $0.5 million at the end of the year.
All assets are depreciated using the straight-line method with the office building a useful life of 40 years and 10 years for office equipment. The useful life of the car is 8 years and IT infrastructure is 5 years. All of the assets will salvage value of 10% for its original cost.
By the year-end the consumer price index rose to 160 from an initial level of 125, averaging 140 during the year.
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