Rindy Inc. has a popular line of beaded jewellery. Rindy reported net earnings of $21,000 for 2014.

Question:

Rindy Inc. has a popular line of beaded jewellery. Rindy reported net earnings of $21,000 for 2014. Rindy depreciates furniture, fixtures, equipment and automotive assets on a straight-line basis over five years and assumes no residual value. Depreciation expense for the year totaled $1,000 and the assets are four years old.

What would net income be for 2014 if Rindy used the double-diminishing balance (DDB) instead? The company's income tax rate is 25%.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0133472264

5th Canadian edition

Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin

Question Posted: