What is the double-declining balance rate of depreciation for an asset that is expected to have a
Question:
Step by Step Answer:
If an asset is expected to have a 10year life the...View the full answer
Accounting Introduction To Financial Accounting
ISBN: 9781517089719
1st Edition
Authors: Henry Dauderis, David Annand
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
Students also viewed these Accounting questions
-
The table below itemizes several assets. The company uses the double declining balance method to determine depreciation expense, which means that the rate used will be 2 divided by useful life. For...
-
Modify What SUPs Double Declining Balance Depreciation Schedule You are to add another depreciation schedule for What SUP. Use the ch4-01_DDB_student_name worksheet you created in this chapter. Add a...
-
Multiple Choice Questions 1. A method that excludes residual value from the depreciation base for the calculation of depreciation is: a. Straight- line b. Sum- of- the- years- digits c. Double-...
-
A solid homogeneous disk 900 mm in diameter with a mass of 140 kg is rolled up 20 incline by a force of 1000 N, applied parallel to the plane. Assuming no slipping. determine the speed of the disk...
-
Dalton Pharmaceuticals enjoys a dominant position in the southeast U.S. with over 800 discount retail outlets. These stores are served by twice-weekly deliveries from Daltons 16 warehouses, which are...
-
In the last sheet of the finished version of the Fixed Cost Manufacturing file, we illustrated one way to model the Great Threads problem with IF functions, but saw that this approach doesnt work....
-
Consider the electronic inverter data in Table B.14. Delete the second observation in the data set. Split the remaining observations into prediction and estimation data sets. a. Find the minimum...
-
Hinkel Rotary Engine, Ltd., produces four- and sixcylinder models of automobile engines. The firm's profit for each four-cylinder engine sold during its quarterly production cycle is $1,800 $50X1,...
-
What variables affect the value of a stock according to the dividend-growth model? What role do earnings play in this model? How do interest rates and risk affect a stock's price in the Capital...
-
Assume that the Special Contract Division of Smith experienced the following transactions during the year ended December 31, 2020. i (Click the icon to view the transactions.) Requirements 1. Prepare...
-
What is the effect on the carrying amount of an asset over its useful life when it is depreciated using the declining balance method? the straight-line method?
-
How is partial-year depreciation expense calculated?.
-
The compound you identified in Problem 7 is a metabolic regulator. Predict its effect on (a) hexokinase and (b) PFK.
-
Module 9, Quadratic Functions Assignment When a company offers a new product or service, they estimate how much of that product or service people will want at different prices. This is referred to as...
-
A sample of 103 college students asked them if they likedstatistics. 92.2% said yes. Calculate a 97% confidence interval forthe true population proportion of those who like statistics. lower limit:...
-
When you look at the world's top 100 economies by revenue, what will you notice ? give your opinion
-
Topic: challenges in logistic in recent years 1. How did the logistic firms in Berlin in food retail chain, manage the recent challenges of inflation and pandemic. Objective: My objective is to...
-
Based on the conclusions of Zhang, Banerjee, and Amarshi, and the other readings in this module, what are the current issues in how Express Entry is (or isn't) impacting labour shortages in Canada?...
-
DUDs Dry Cleaners recently adopted total quality management. Dee Mathias, the owner, has hired you as a consultant. Classify each of thae following activities as either value-adding (V) or...
-
1. What are some current issues facing Saudi Arabia? What is the climate for doing business in Saudi Arabia today? 2. Is it legal for Auger's firm to make a payment of $100,000 to help ensure this...
-
Name some users of accounting information.
-
Name some users of accounting information.
-
Name some users of accounting information.
-
Match the statements to the protocols * faster more reliable used for sending data TCP UDP both
-
1. Should managers try to maximize market value of equity or to maximize the accounting value of equity in the balance sheet? Why? 2. What is your understanding of the relationship between risk and...
-
How much risk is appropriate for a government-run annuity system? Is there an appropriate risk-return calculation to be made? Is Social Security risk free? What about political risk?
Study smarter with the SolutionInn App