An accelerated depreciation method creates a larger depreciation charge as the asset comes closer to the...
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An accelerated depreciation method creates a larger depreciation charge as the asset comes closer to the end of its useful life. T or F |
Homework Answers
| False | |
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An accelerated depreciation method charges higher amount of depreciation at the beginning life of an asset as compared to the ending life. Hence the statement is false |
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An accelerated depreciation method creates a larger depreciation charge as the asset comes closer to the...
Indicate whether the following are TRUE or FALSE. A company had net sales of $545,000...
Indicate whether the following are TRUE or FALSE. A company had net sales of $545,000 and cost of goods sold of $345,000. Its gross margin equals $890,000. An accelerated depreciation method creates a larger depreciation charge as the asset comes closer to the end of its useful life. Units of Production is an accelerated depreciation method. _____ The term “depletion” as applied to intangible assets follows the matching principle.
5& 6 Question 15 (of 20) When an accelerated depreciation method is used to calculate depreciation...
5& 6 Question 15 (of 20) When an accelerated depreciation method is used to calculate depreciation expense: O the net book value of the asset halfway through its usefu lift ill he lesthin f straight Jine deprecation s used O the net book value of the asset at the end of its useful life will be less than if straight ine deprecation s used is used
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
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...
Blueprint Connection: Depreciation Methods Depreciation is the process of allocating the cost of an asset to...
Blueprint Connection: Depreciation Methods Depreciation is the process of allocating the cost of an asset to expense over the asset's estimated useful life. The amount depreciated is the cost of the asset less the asset's expected residual value. depreciation method allocates larger amounts of depreciation expense to earlier periods of an asset's life and smaller amounts of depreciation expense to later periods of an asset's life. depreciation allocates an equal amount of the asset's cost to depreciation expense for each...
Which of the following is correct about the comparison of straight-line and accelerated depreciation method? a....
Which of the following is correct about the comparison of straight-line and accelerated depreciation method? a. Straight-line depreciation method accelerates expense recognition in early years of an asset's life. b. Aggressive managers tend to use straight-line depreciation method in early years of an asset's life. c. Accelerated depreciation method accelerates revenue recognition in early years of an asset's life. d. Accelerated depreciation method increases current earnings in early years of an asset's life. e. Both C and D.
1- Marigold Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased...
1- Marigold Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $42000 that will produce an estimated 100000 units over its useful life. Estimated salvage value at the end of its useful life is $4000. What is the depreciation cost per unit? 2- A petty cash fund of $105 is replenished when the fund contains $6 in cash and receipts for $96. The entry to replenish the fund would
Using the Straight Line (SL) depreciation method, what is the (a) annual depreciation charge, Dt=?, (b)...
Using the Straight Line (SL) depreciation method, what is the (a) annual depreciation charge, Dt=?, (b) the total accumulated depreciation charge, D3=?, at the end of year 3, and (c) the Book Value, BV3=?, at the end of year 3, for an automobile with a five-year useful life that has a first cost of $20,200 and an $8,565.00 salvage value?
14.1 Using the Straight Line (SL) depreciation method, what is the (a) annual depreciation charge, Dt=?,...
14.1 Using the Straight Line (SL) depreciation method, what is the
(a) annual depreciation charge, Dt=?, (b) the total accumulated
depreciation charge, D4=? , at the end of year 4, and (c) the book
value, BV=? , at the end of year 4, for an automobile with a
Five-year useful life that has a first cost of $19,657 and an
$8,418.40 salvage value?
14.1 Using the Straight Line (SL) depreciation method, what is the (a) annual depreciation charge, DF?, (b)...
Ture or fause question UI TALSE. A company had net sales of $545,000 and cost of goods sold of S345,000. Its gross 1...
Ture or fause question
UI TALSE. A company had net sales of $545,000 and cost of goods sold of S345,000. Its gross 1. margin equals $890,000 An accelerated depreciation method creates a larger depreciation charge as the asset comes closer to the end of its useful life. 3. JUnits of Production is an accelerated depreciation method. __4. The term "depletion" as applied to intangible assets follows the matching principle. Even if the end of an accounting period occurs between the...
5& 6 Question 15 (of 20) When an accelerated depreciation method is used to calculate depreciation expense: O the net book value of the asset halfway through its usefu lift ill he lesthin f straight Jine deprecation s used O the net book value of the asset at the end of its useful life will be less than if straight ine deprecation s used is used
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...
Blueprint Connection: Depreciation Methods Depreciation is the process of allocating the cost of an asset to expense over the asset's estimated useful life. The amount depreciated is the cost of the asset less the asset's expected residual value. depreciation method allocates larger amounts of depreciation expense to earlier periods of an asset's life and smaller amounts of depreciation expense to later periods of an asset's life. depreciation allocates an equal amount of the asset's cost to depreciation expense for each...
14.1 Using the Straight Line (SL) depreciation method, what is the
(a) annual depreciation charge, Dt=?, (b) the total accumulated
depreciation charge, D4=? , at the end of year 4, and (c) the book
value, BV=? , at the end of year 4, for an automobile with a
Five-year useful life that has a first cost of $19,657 and an
$8,418.40 salvage value?
14.1 Using the Straight Line (SL) depreciation method, what is the (a) annual depreciation charge, DF?, (b)...
Ture or fause question
UI TALSE. A company had net sales of $545,000 and cost of goods sold of S345,000. Its gross 1. margin equals $890,000 An accelerated depreciation method creates a larger depreciation charge as the asset comes closer to the end of its useful life. 3. JUnits of Production is an accelerated depreciation method. __4. The term "depletion" as applied to intangible assets follows the matching principle. Even if the end of an accounting period occurs between the...
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