Assuming PPE is used evenly over its useful life, which method of depreciation will result in the largest amount of depreciation in the first year? units-of-production depletion straight line double-declining-balance

Assuming PPE is used evenly over its useful life, which method of depreciation will result in the largest amount of depreciation in the first year? units-of-production depletion straight line double-declining-balance

Name: Please write to text me answer Assuming PPE is used evenly over its us
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Description: Please write to text me answer Assuming PPE is used evenly over its useful life, which method of depreciation will result in the largest amount of depreciation in the first year?units-of-productiondepletionstraight linedouble-declining-balance

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.2.2MBA

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Similar questions

The straight-line method of depreciation allocates the cost of an asset more rapidly than the sum-of-the-years-digits method.
At the end of the expected useful life of a depreciable asset with an estimated 15% residual value, the accumulated depreciation would equal the original cost of the asset under which of the following depreciation methods?
Characteristics of Depreciation Methods Below is a common list of depreciation methods and characteristics related to depreciation. Depreciation Methods a. Straight-line depreciation method b. Declining balance depreciation method c. Units-of-production depreciation method when actual units produced increases over the life of the asset Characteristics 1. Results in depreciation expense that decreases over the life of the asset. 2. Results in depreciation expense that increases over the life of the asset. 3. Allocates the same amount of cost to each period of a depreciable assets life. 4. Calculated by multiplying a constant depreciation rate by depreciable cost. 5. Calculated by applying a constant depreciation rate to the assets book value at the beginning of the period. 6. Results in lowest income taxes in early years of the assets life. 7. Consistent with the matching principle. Required: Match one or more of the depreciation methods with each characteristic.
Acton, Inc., uses the double-declining-balance method for depreciation on itscomputers. Which item is not needed to compute depreciation for the first year?a. Estimated residual valueb. Expected useful life in yearsc. Original costd. All the items listed are needed.
Which method almost always produces the most depreciation in the first year? a. Units-of-production b. Straight-line c. Double-declining-balance d. All produce the same depreciation in the first year.
Which of the following best describes an accelerated depreciation method? A. A method by which an equal amount of expense is assigned for every full year of use. B. A method by which depreciation is based on the level of actual usage rather than the passage of time. C. A method of determining depreciation which assigns larger expenses to the initial years of an asset’s service and smaller expenses to the later years. D. A method of allocating the cost of a wasting asset to expense over the periods during which the value is removed from the property.
The depreciation method in which the depreciable cost of an asset is apportioned equally over its estimated life in terms of months or years is called the a.straight-line method. b.declining-balance method. c.sum-of-the-years'-digit method. d.units-of-production method.
The depreciation method in which the depreciable cost of an asset is apportioned equally over its estimated life in terms of months or years is called the a.units-of-production method. b.straight-line method. c.declining-balance method. d.sum-of-the-years'-digits method.
Which of the statements is incorrect concerning the depreciation methods? * a. Under the output method, the cost per unit of production is constant. b. The straight-line method is particularly appropriate where the asset is expected to decline in usefulness as a function of time and the expected use pattern of the asset is fairly constant over time. c. The sum of the years' digits method provides for a decreasing depreciation charge. d. First-year depreciation under the double declining balance method is computed as the depreciable amount multiplied by double the straight line rate. . None of the choices is incorrect
Which of the following statements is true? - When using the double-declining-balance method, the total amount of depreciation expense during the life of the asset will be the highest. -When using the units-of-output method, it is possible to depreciate more than the depreciable cost. -When using the straight-line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance. -Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.
Which of the following depreciation methods applies a uniform depreciation rate each period to an asset's carrying amount? a.Straight-lineb.Declining-balancec.Sum-of-the-years'-digitsd.Units-of-production
Which of the following is true? a.If using the units-of-output method, it is possible to depreciate more than the depreciable cost. b.If using the double-declining-balance method, the total amount of depreciation expense during the life of the asset will be the highest. c.If using the straight-line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance. d.Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.