Respuesta :
Answer: 20.6
Explanation:
Depreciation is when the value of an asset decreases with time as a result of usage which has resulted in wear and tear.
In this question, we have been informed that the depreciation is 17.2 and that there is a 20% growth in sales. Therefore, Billy's Burgers' depreciation for 2011 will be:
= 17.2 × (100% + 20%)
= 17.2 × 120%
= 17.2× (120/100)
= 17.2 × 1.2
= 20.64
= 20.6 approximately
Billy's Burgers' depreciation for 2011 will be $20.6 million
The estimation of the Billy's Burgers' depreciation for 2011 is option b $20.6 million.
Calculation of the depreciation;
Since
Depreciation in 2010 = $17.2 million
Growth Rate = 20%
So,
Depreciation in 2011 = Depreciation in 2010 * (1 + Growth Rate)
= $17.2 million * 1.20
= $20.6 million
Therefore, the estimated depreciation in 2011 is $20.6 million.
Also, depreciation is the non-cash expense that shows on the debit side of the income statement.
learn more about depreciation here: https://brainly.com/question/24542650
