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STRAIGHT LINE METHOD
EXPLANATION:- UNDER STRAIGHT LINE METHOD THE ASSUMPTION IS THAT THE ASSET IS USED EVENLY IN THE LIFE OF THE ASSET.THIS METHOD HELP TO CHARGE UNIFORM DEPRECIATION THROUGHOUT THE LIFE OF ASSET.MOST OF THE COMPANIES ACT AND INCOME TAX ACT SUGGEST STRAIGHT LINE METHOD FOR CHARGING DEPRECIATION.
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QUESTION 1 The most widely used depreciation method is O straight-line O sum-of-the-years-digits O declining-balance units-of-production
The most widely used depreciation method for financial statements is 1) straight-line 2) MACRS O3) declining-balance...
The most widely used depreciation method for financial statements is 1) straight-line 2) MACRS O3) declining-balance O4) units-of-production The method of depreciation that yields a depreciation charge that varies with the amount of asset usage is known as the units-of-production method. True O False
Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost...
Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost of $29,830. It is expected to serve for eight years and have a salvage value of $5,430. Calculate the depreciation expense for the first and third years of the truck's life using the following methods. If required, round your answers to the nearest cent. Depreciation Expense Year 1 Year 3 1. Straight-line 2. Double-declining-balance 3. Sum-of-the-years'-digits
Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost of $38,730. It is expected to serve for eight years and have a salvage valu...
Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost of $38,730. It is expected to serve for eight years and have a salvage value of $5,690. Calculate the depreciation expense for the first and third years of the truck’s life using the following methods. If required, round your answers to the nearest cent. Depreciation Expense Year 1 Year 3 1. Straight-line $ $ 2. Double-declining-balance $ $ 3. Sum-of-the-years'-digits $ $
True or False Straight-line is the most widely used depreciation method in financial statements, and MACRS...
True or False Straight-line is the most widely used depreciation method in financial statements, and MACRS is the most widely used method in federal income tax returns.
Question 17 (2 points) Which depreciation method has the largest depreciation amount the first year: O...
Question 17 (2 points) Which depreciation method has the largest depreciation amount the first year: O Straight Line O Sum of Years Digits O Double Declining Balance O Declining Balance
Question 12 (1 point) A change from the straight-line method to the sum-of-years-digits method of depreciation...
Question 12 (1 point) A change from the straight-line method to the sum-of-years-digits method of depreciation is handled as: A retrospective change back to the date of acquisition as though the current estimated life had been used all along Acumulative adjustment to income in the current year for the difference in depreciation under the new versus old useful life estimate. A prospective change from the current year through the remainder of its useful life. None of these answer choices are...
Exercise 12-29 Value of Accelerated Depreciation: Sum-of-Years'-Digits (SYD) and Double Declining. Balance (DDB) Methods (LO 12-3)...
Exercise 12-29 Value of Accelerated Depreciation: Sum-of-Years'-Digits (SYD) and Double Declining. Balance (DDB) Methods (LO 12-3) Freedom Corporation acquired a fixed asset for $100,000. Its estimated life at time of purchase was 4 years, with no estimated salvage value. Assume a discount rate of 8% and an income tax rate of 40%. (Use Exhibit 124. Appendix C. TABLE 1 and Appendix C. TABLE 2) Required: 1. What is the incremental present value of the tax benefits resulting from calculating depreciation...
During 2019 and 2020, Faulkner Manufacturing used the sum-of-the-years-digits (SYD) method of depreciation for its depreciable...
During 2019 and 2020, Faulkner Manufacturing used the sum-of-the-years-digits (SYD) method of depreciation for its depreciable assets, for both financial reporting and tax purposes. At the beginning of 2021, Faulkner decided to change to the straight-line method for both financial reporting and tax purposes. A tax rate of 25% is in effect for all years. For an asset that cost $15,100 with an estimated residual value of $1100 and an estimated useful life of 10 years, the depreciation under different...
Explain the 3 different methods of accounting for Depreciation. (Straight Line, Double Declining Balance, Units of Output...
Explain the 3 different methods of accounting for Depreciation. (Straight Line, Double Declining Balance, Units of Output or Production) Comment on the definition, calculation, journal entries, etc. of each method
Explain the difference between the straight line, double declining balance and the unit-of-production depreciation methods. Document...
Explain the difference between the straight line, double declining balance and the unit-of-production depreciation methods. Document the method used for each of the three companies (Pepsi,Coca-Cola and Dr Pepper Snapple).
The most widely used depreciation method for financial statements is 1) straight-line 2) MACRS O3) declining-balance O4) units-of-production The method of depreciation that yields a depreciation charge that varies with the amount of asset usage is known as the units-of-production method. True O False
Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost of $29,830. It is expected to serve for eight years and have a salvage value of $5,430. Calculate the depreciation expense for the first and third years of the truck's life using the following methods. If required, round your answers to the nearest cent. Depreciation Expense Year 1 Year 3 1. Straight-line 2. Double-declining-balance 3. Sum-of-the-years'-digits
Question 17 (2 points) Which depreciation method has the largest depreciation amount the first year: O Straight Line O Sum of Years Digits O Double Declining Balance O Declining Balance
Question 12 (1 point) A change from the straight-line method to the sum-of-years-digits method of depreciation is handled as: A retrospective change back to the date of acquisition as though the current estimated life had been used all along Acumulative adjustment to income in the current year for the difference in depreciation under the new versus old useful life estimate. A prospective change from the current year through the remainder of its useful life. None of these answer choices are...
Exercise 12-29 Value of Accelerated Depreciation: Sum-of-Years'-Digits (SYD) and Double Declining. Balance (DDB) Methods (LO 12-3) Freedom Corporation acquired a fixed asset for $100,000. Its estimated life at time of purchase was 4 years, with no estimated salvage value. Assume a discount rate of 8% and an income tax rate of 40%. (Use Exhibit 124. Appendix C. TABLE 1 and Appendix C. TABLE 2) Required: 1. What is the incremental present value of the tax benefits resulting from calculating depreciation...
During 2019 and 2020, Faulkner Manufacturing used the sum-of-the-years-digits (SYD) method of depreciation for its depreciable assets, for both financial reporting and tax purposes. At the beginning of 2021, Faulkner decided to change to the straight-line method for both financial reporting and tax purposes. A tax rate of 25% is in effect for all years. For an asset that cost $15,100 with an estimated residual value of $1100 and an estimated useful life of 10 years, the depreciation under different...
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