Homework Answers
Solution :
Solution:
The depreciation method that allocates an equal portion of the total depreciable cost of a plant asset to each unit produced is called the Units - of - Production Depreciation.
The formula for calculating the depreciation expense as per the Units - of - Production Depreciation method is
Depreciation Expense = [ ( Cost of plant – Salvage value ) / Estimated total number of units to be produced over the useful life of the plant ] * No. of units produced
Thus the solution is Option 4: Units - of - Production depreciation
Add Answer to:
MC Qu. 99 The depreciation method that allocates... The depreciation method that allocates an equal portion...
Project Management 1. The company treasurer must determine the best depreciation method for office furniture that...
Project Management
1. The company treasurer must determine the best depreciation method for office furniture that costs $50,000 and has a zero salvage value at the end of a 10 year depreciable life. Compute the depreciation schedule using: (a) Straight line (b) Double declining balance (C) Sum-of-years' -digits (d) Modified Accelerated Cost Recovery System (MACRS)
6. Depreciation methods Firms can use various methods to calculate depreciation, and it is important for...
6. Depreciation methods Firms can use various methods to calculate depreciation, and it is important for you to consider these different methods when evaluating firms. The impact of different depreciation methods is stronger for asset-intensive firms. Major factors that affect the depreciation of a fixed asset include the purchase cost, residual/salvage value, and estimated useful life of the asset. The purchase cost includes the asset's explicit cost plus necessary costs associated with setting up and operating the asset (such as...
True or False: All else equal, the use of the modified accelerated cost recovery system (MACRS)...
True or False: All else equal, the use of the modified accelerated cost recovery system (MACRS) versus straight-line depreciation increases the net present value of a capital budget analysis.
Straight-Line Depreciation Rates Convert each of the following estimates of useful life to a straight-line depreciation...
Straight-Line Depreciation Rates Convert each of the following estimates of useful life to a straight-line depreciation rate, stated as a percentage, assuming that the residual value of the fixed asset is to be ignored: (a) 4 years, (b) 8 years, (c) 10 years, (d) 16 years, (e) 25 years, (f) 40 years, (g) 50 years. If required, round your answers to two decimal places. Years Percentage 4 years 8 years 10 years 16 years 25 years 40 years 50 years...
No results > arch Options 10 poi QUESTION 3 An account showing the portion of the cost of a plant asset that has...
No results > arch Options 10 poi QUESTION 3 An account showing the portion of the cost of a plant asset that has been written off to date as a depreciation expense is called half-year convention o capital expenditure O MACRS revenue expenditure O straight-line O goodwill accumulated depreciation research and development accelerated depreciation none of the above QUESTION 4 Save All Answers Click Save and Submit to save and submit. Click Save All Answers to save all answers, earch
Year 2 18,750 Year 3 15,750 Year 4 8,400 c. Double-declining-balance method Year Amount Year 1...
Year 2 18,750 Year 3 15,750 Year 4 8,400 c. Double-declining-balance method Year Amount Year 1 27,136 Year 2 $ 1 Year 3 $ Year 4 Feedback Check My Work Asset cost minus residual value equals depreciable cost. Straight-line method allocates the d yearly depreciation to determine total depreciation. Annual units-of-activity depreciation allocates the cost of the asset equally over the units pre The double-declining rate is two times the straight-line rate. Book value is the asset cost mir Compare...
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
n asset costs $270,000 and is classified as a ten-year asset. What is the annual depreciation...
n asset costs $270,000 and is classified as a ten-year asset. What is the annual depreciation expense for the first three years under the straight-line and the modified accelerated cost recovery systems of depreciation? Be sure to apply the half-year convention to straight-line depreciation. Use Exhibit 9.4 to answer the question. Round your answers to the nearest dollar. Straight-line depreciation: Year Depreciation expense 1 $ 2 $ 3 $ Accelerated cost recovery system of depreciation: Year Depreciation expense 1 $ ...
Calculate the annual Straight Line depreciation charge for a asset with a cost basis of $12,000,...
Calculate the annual Straight Line depreciation charge for a asset with a cost basis of $12,000, a depreciable life of 10 years, and a Salvage value of $2,000. If you believe the useful life of an asset will be 10 years, the Bonus Depreciation method allows for 100% depreciation in year 1, and the MACRS method indicates the depreciable life is 7 years, what is the useful life you should use in capital recovery economic analysis? SHOW ALL CALCULATIONS
On January 2, 2020, Rachel, Inc. purchased a new machine for its factory. The new machine...
On January 2, 2020, Rachel, Inc. purchased a new machine for its factory. The new machine cost $55,000, has an expected useful life of 7 years and an estimated residual value of $5,000. Prepare a depreciation schedule for the new machine using the following depreciation methods: 1) Straight Line (SL) 2) Sum-of-the-Years-Digits (SYD) 3) Declining Balance using twice the straight line rate (DDB) 4) Modified Accelerated Cost Recovery System (MACRS) (5 year asset class)
Project Management
1. The company treasurer must determine the best depreciation method for office furniture that costs $50,000 and has a zero salvage value at the end of a 10 year depreciable life. Compute the depreciation schedule using: (a) Straight line (b) Double declining balance (C) Sum-of-years' -digits (d) Modified Accelerated Cost Recovery System (MACRS)
6. Depreciation methods Firms can use various methods to calculate depreciation, and it is important for you to consider these different methods when evaluating firms. The impact of different depreciation methods is stronger for asset-intensive firms. Major factors that affect the depreciation of a fixed asset include the purchase cost, residual/salvage value, and estimated useful life of the asset. The purchase cost includes the asset's explicit cost plus necessary costs associated with setting up and operating the asset (such as...
Straight-Line Depreciation Rates Convert each of the following estimates of useful life to a straight-line depreciation rate, stated as a percentage, assuming that the residual value of the fixed asset is to be ignored: (a) 4 years, (b) 8 years, (c) 10 years, (d) 16 years, (e) 25 years, (f) 40 years, (g) 50 years. If required, round your answers to two decimal places. Years Percentage 4 years 8 years 10 years 16 years 25 years 40 years 50 years...
No results > arch Options 10 poi QUESTION 3 An account showing the portion of the cost of a plant asset that has been written off to date as a depreciation expense is called half-year convention o capital expenditure O MACRS revenue expenditure O straight-line O goodwill accumulated depreciation research and development accelerated depreciation none of the above QUESTION 4 Save All Answers Click Save and Submit to save and submit. Click Save All Answers to save all answers, earch
Year 2 18,750 Year 3 15,750 Year 4 8,400 c. Double-declining-balance method Year Amount Year 1 27,136 Year 2 $ 1 Year 3 $ Year 4 Feedback Check My Work Asset cost minus residual value equals depreciable cost. Straight-line method allocates the d yearly depreciation to determine total depreciation. Annual units-of-activity depreciation allocates the cost of the asset equally over the units pre The double-declining rate is two times the straight-line rate. Book value is the asset cost mir Compare...
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
Most questions answered within 3 hours.
-
Caculate the PH THANK YOU!
[OH−] = 1.9×10−7 M
[OH−] = 1.6×10−8 M
[OH−] = 7.2×10−11...
asked 8 minutes ago -
Suppose you drive an old truck with a 32 gallon gas tank that
gets 16 miles/gallon....
asked 10 minutes ago -
What can be the anticipated results of curing diabetes with stem
cells?
asked 7 minutes ago -
As
an analyst you believe that Acme Company will pay a dividend of $3
per share...
asked 15 minutes ago -
Claim: At most 81% of adults do not have hypertension. When 869
randomly selected adults were...
asked 32 minutes ago -
Assume a class has 19 members.
a. In how many ways can a president, a vice...
asked 29 minutes ago -
What could be a possible reason that protozoan infections are
increasing in the United States
asked 28 minutes ago -
Implement a Full Adder with two 4x1 Mux and the MSB as possible
inputs of the...
asked 38 minutes ago -
offering the survey (maybe via smart phones) is a good idea?
why?
asked 34 minutes ago -
2. Construct a business plan for your proposed business in
question 1, paying particular attention to:...
asked 32 minutes ago -
1. Choose a work situation in which you were required to do a
lot of creative...
asked 38 minutes ago -
An aqueous solution of barium hydroxide is
standardized by titration with a 0.196 M solution
of...
asked 1 hour ago