ZuoTi.Pro
Question

Question 17 (2 points) Which depreciation method has the largest depreciation amount the first year: O Straight Line O Sum of

engineering   Mechanical-Engineering   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Option C is correct

The double-declining balance method is a type of accelerated depreciation method that calculates a higher depreciation charge in the first year of an asset’s life and gradually decreases depreciation expense in subsequent years.

Double-declining balance formula = 2 X Cost of the asset X Depreciation rate

However, accelerated depreciation does not mean that the depreciation expense will also be higher. The asset will depreciate by the same amount however it will be expensed higher in early years of its useful life while the depreciation expense will be lower in the later years of as compared to the straight line method of depreciation.

0 0
Add a comment
Know the answer?
Add Answer to:
Question 17 (2 points) Which depreciation method has the largest depreciation amount the first year: O...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Check my work Exercise 18.4 Computing depreciation under various methods. LO 18-2 25 points M. Com...

    Check my work Exercise 18.4 Computing depreciation under various methods. LO 18-2 25 points M. Com →CO Hightower Company acquired an asset on January 2, 2019, at a cost of $148,000. The asset's useful life is four years and its salvage value is $48,000. Compute the depreciation expense for each of the first two years, using the straight-line method, the double-declining-balance method, and the sum-of-the-years-digits method. eBook Hint References Complete this question by entering your answers in the tabs below....

  • Which depreciation method results in the most depreciation in the first year of the truck’s five-year...

    Which depreciation method results in the most depreciation in the first year of the truck’s five-year useful life? Straight-line Activity-base Double-declining-balance They are all equal Which depreciation method results in the same amount of depreciation each year? Straight-line Activity-base Double-declining-balance They are all equal Which depreciation method results in the most accumulated depreciation by the end of the truck’s five-year useful life? Straight-line Activity-base Double-declining-balance They are all equal What is the truck’s estimated residual value (Hint: Recall the purchase...

  • Answer the following questions concerning the choice of depreciation method for an asset that has a...

    Answer the following questions concerning the choice of depreciation method for an asset that has a 10-year life. Select your answer by clicking in the drop down box to the right of each question. Which depreciation method will show the highest amount of income tax expense in the first year of owning the asset?       [ Choose ]            double-declining balance or straight-line       Which depreciation method will show the higher book value of the asset...

  • Exercise 11-2 (Part Level Submission) Buffalo Company acquired a plant asset at the beginning of Year...

    Exercise 11-2 (Part Level Submission) Buffalo Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and...

  • QUESTION 1 The most widely used depreciation method is O straight-line O sum-of-the-years-digits O declining-balance units-of-production

    QUESTION 1 The most widely used depreciation method is O straight-line O sum-of-the-years-digits O declining-balance units-of-production

  • On January 4, 2019, Columbus Company purchased new equipment for $693,000 that had a useful life...

    On January 4, 2019, Columbus Company purchased new equipment for $693,000 that had a useful life of four years and a salvage value of $53,000. Required: Prepare a schedule showing the annual depreciation and end-of-year accumulated depreciation for the first three years of the asset’s life under the straight-line method, the sum-of-the-years’-digits method, and the double-declining-balance method. Analyze: If the double-declining balance method is used to compute depreciation, what would be the book value of the asset at the end...

  • P M Gmail Youtube Maps er 18 Homework Problem 18.2A Using different depreciation methods and comparing...

    P M Gmail Youtube Maps er 18 Homework Problem 18.2A Using different depreciation methods and comparing the results. LO 18-2 On January 4, 2019. Columbus Company purchased new equipment for $633,000 that had a useful life of four years and a salvage value of $43,000. Required: Prepare a schedule showing the annual depreciation and end-of-year accumulated depreciation for the first three years of the asset's life under the straight-line method, the sum-of-the-years' digits method, and the double-declining balance method. Analyze:...

  • Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the...

    Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the following estimates: Service Life 5 years or 10,000 hours Production 180,000 units Residual value $18,000 In 2016, Gruman uses the machine for 1,700 hours and produces 45,000 units. In 2017, Gruman uses the machine for 1,400 hours and produces 30,000 units. If required, round your final answers to the nearest dollar. Required: 1. Compute the depreciation for 2016 and 2017 under each of the...

  • Hightower Company acquired an asset on January 2, 2019, at a cost of $154,000. The asset’s...

    Hightower Company acquired an asset on January 2, 2019, at a cost of $154,000. The asset’s useful life is four years and its salvage value is $52,000. Compute the depreciation expense for each of the first two years, using the straight-line method, the double-declining-balance method, and the sum-of-the-years’-digits method. Compute the depreciation expense for the first two years, using the straight-line method. STRAIGHT-LINE METHOD Year Acquisition Cost Salvage Value Useful Life Depreciation Accumulated Depreciation 1 years 2 years DOUBLE-DECLINING-BALANCE METHOD...

  • Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2019. It made the...

    Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2019. It made the following estimates: Service life 5 years or 10,000 hours Production 180,000 units Residual value $ 18,000 In 2019, Gruman uses the machine for 2,000 hours and produces 45,000 units. In 2020, Gruman uses the machine for 1,400 hours and produces 34,000 units. If required, round your final answers to the nearest dollar. Required: Compute the depreciation for 2019 and 2020 under each of the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT