Assume that a company chooses an accelerated method of calculating depreciation expense for financial statement reporting purposes
Question:
Required:
State the effect (higher, lower, no effect) of accelerated depreciation relative to straight-line depreciation on
a. Depreciation expense in the first year.
b. The asset’s net book value after two years.
c. Cash flows from operations (excluding income taxes).
Step by Step Answer:
a Accelerated depreciation expense in the first year will be higher than stra...View the full answer
Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Accounting questions
-
Depreciation is a period expense for financial statement purposes. Do you agree? Explain.
-
Assume that a company has recently switched to JIT manufacturing. Each manufacturing cell produces a single product or major subassembly. Cell workers have been trained to perform a variety of tasks....
-
The consolidated cash flows from operations of Jones Corporation and its subsidiary Short Manufacturing for 20X2 decreased quite substantially from 20X1 despite the fact that consolidated net income...
-
Assuming 10% minimum required reserve ratio, 5% excess reserve ratio, and people holding 10% of cash received at home (not deposited in the banks), the money multiplier is equal to Select one: a....
-
Teresa Flanagan, the accountant, is a perfectionist. No one can do the job as well as she can. Indeed, she has found budget information provided by the various departments to be worthless. She must...
-
Living creatures generally have a higher temperature than their environment. Explain why this makes sense.
-
Distinguish the following data as discrete or continuous. Explain why. a. Temperature. b. Speed. c. Number of orders. d. Age. e. Weight. f. Price. g. Count.
-
Direct material variancessolving for price and usage variances. Fiberworks Company is a manufacturer of fiberglass toy boats. The company has recently implemented a standard cost system and has...
-
In Sunland Company, the predetermined overhead rate is 80% of direct labor cost. During the month, $218000 of factory labor costs are incurred, of which $190000 is direct labor and $28000 is indirect...
-
Given two arrays each of length n, arr1, and arr2, in one operation, any two elements of an array can be swapped. This can occur any number of times. Find the maximum possible sum of i*(arr2[1]-...
-
Alpha, Inc., and Beta Co. are sheet metal processors that supply component parts for consumer product manufacturers. Alpha, Inc., has been in business since 1980 and is operating in its original...
-
Millco, Inc., acquired a machine that cost $240,000 early in 2010. The machine is expected to last for eight years, and its estimated salvage value at the end of its life is $24,000. Required: a....
-
Create an Automobile class for a dealership. Include fields for an ID number, make, model, color, year, and miles per gallon. Include get and set methods for each field. Do not allow the ID to be...
-
write a PYTHON program Build an n gram language model based on nltks Reuters corpus (from nltk.corpus import reuters), providethe code. (You can build a language model in a few lines of code using...
-
John Doe and Jane Smith have an age difference of 5 years. Jane Smith and Alice Brown have an age difference of 3 years. Bob White and Alice Brown have an age difference of 7 years. John...
-
Upon graduating from high school in 2 0 2 2 , you were granted a $ 6 , 0 0 0 college scholarship for the academic year 2 0 2 2 - 2 0 2 3 . As a full - time student and degree candidate during the...
-
the assignment is to force you to write several nested loops with an if statement inside, as well as recognize the time penalty associated with for loops in Matlab. We are going to evaluate a...
-
Identify a community - based program ( ( off - campus ) ) that focuses on addressing health issues. The program may focus on behavior change, changing local environments for health, or developing...
-
Modify BST to add a method size() that returns the number of key-value pairs in the symbol table. Use the approach of storing within each Node the number of nodes in the subtree rooted there.
-
Can partitioned join be used for r r.A s? Explain your answer
-
Solve the equation 5 cosh x + 3 sinh x = 4
-
Selected data from the September 27, 2014, and September 28, 2013, consolidated balance sheets and income statement for the years then ended for Apple Inc. follow. All amounts are reported in...
-
During the year, net sales were $250,000; gross profit was $100,000; net income was $40,000; income tax expense was $10,000; and selling, general, and administrative expenses were $44,000. Required:...
-
During the year, cost of goods sold was $80,000; income from operations was $76,000; income tax expense was $16,000; interest expense was $12,000; and selling, general, and administrative expenses...
-
A client required an IP address from DHCP server, please list the steps of the DHCP process?
-
Bijan's pipelined processor features separate instruction and data caches. The instruction cache (I-cache) has a single level and the data cache (D-cache) has two levels, as shown in the figure...
-
Peter opened a brokerage account to sell short 1,200 shares of Carb Farm stock at the current market price of $160 per share. The brokerage firm charges 12% per annum on the margin loan. a. Suppose...
Study smarter with the SolutionInn App