the formula to calculate straight line depreciation is as follows The formula to calculate straight line depreciation is as followsO a.O b.O c.O d.(Market value - Cost) / useful life(Market value - Residual value) / economic life(Cost- Market value) / useful life(Cost - Residual value) / useful life

Straight-line depreciation is an accounting technique that distributes the cost of a tangible item…

Answered: Formula to calculate straight line…

Business

Accounting

Formula to calculate straight line depreciatio

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 9MC: The estimated economic life of an asset is also known as ________. A. residual value B. book value...

See similar textbooks

Related questions

Q: A corporation issued bonds on January 1, 2018 with the following terms: Face Value: $500,000 Coupon…

A: A bonds a one type of instrument that represent issuer owes a debt of bond holder. and coupon rate…

Q: Kronk, Incorporated provides the following information concerning the work in process at its plant:…

A: Material is the cost which is incurred by the entity on the making of the goods. It is a direct…

Q: Piedmont Company segments its business into two regions-North and South. The company prepared the…

A: The break-even point is the level of sales at which total revenue equals total costs, resulting in…

Q: Beverly Plastics produces a part used in precision machining. The part is produced in two…

A: Equivalent units means where the some goods remain incomplete at the end of process and we need to…

Q: Required information [The following information applies to the questions displayed below] Golf…

A: Dividend is the reward given to the shareholders in the form of shares, cash or other.The dividend…

Q: price

A: Fixed Overhead Rate6.35Variable Overhead Rate1.8Total Overhead Rate8.15

Q: no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit…

A: Perpetual inventory system is used for recording the transactions related to the purchase and sale…

Q: Carla Vista Corporation has collected the following information after its first year of sales Sales…

A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…

Q: Parnell Company acquired construction equipment on January 1, 2020, at a cost of $77,000. The…

A: Introduction:A journal entry is used to record a company that will focus on a company's accounting…

Q: Relevant Range and High-Low Method The following selected data relate to the major cost categories…

A: Semi-variable costA semi-variable cost, also known as a mixed cost, is a cost that includes both…

Q: If the salaries expense is expected to increase by 10% to R40 150, then the salaries expense prior…

A: Salaries expense is the amount of wages paid or payable by employees during the period. Salaries…

Q: Which of the following is the correct journal entry for Taylor Company to record in March, where…

A: The journal entries are prepared to record the trnasactions on regular basis. The assets and…

Q: Horvath Company uses an imprest petty cash system. The fund was established on March 1 with a…

A: Petty Cash FundA small cash fund's main objective is to give company units enough money to pay for…

Q: Zhang Company leased equipment from Mann Industries. The lease agreement qualifies as a finance…

A: The concept of present value acknowledges that the worth of money today is often greater than its…

Q: Miller Company's contribution format income statement for the most recent month is shown below: Per…

A: In case of multiple sub parts, we are allowed to solve only the first three sub parts. In order to…

Q: The budget director for Baird Cleaning Services prepared the following list of expected selling and…

A: Salary Payable -Salary Payable is the amount incurred but remains unpaid. These shall be recorded in…

Q: The following transactions are for Shamrock Company. On December 3, Shamrock Company sold $533,400…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: Dollar Tree, Inc. Common Size Income Statement Total revenue Cost of sales Selling, general and…

A: Common size statements are used for the analysis of financial statements. The Common Size Income…

Q: A plant asset cost $313600 and is estimated to depreciation expense recorded for the third year…

A: The double-declining-balance approach is an accelerated depreciation strategy that distributes…

Q: On December 31, 2020, Monty Co. performed environmental consulting services for Hayduke Co. Hayduke…

A: A journal entry is a financial record kept by a company or individual to record a specific financial…

Q: Current Attempt in Progress Leon's Lawn Equipment sells high-quality lawn mowers and offers a 3-year…

A: A liability account that details the expected sum that a business will have to pay to fix or replace…

Q: Required information [The following information applies to the questions displayed below.] Hemming…

A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…

Q: Blue Corporation Comparative Account Information Relating to Operations For the Year Ended December…

A: Cash flows statement is one of the financial statement being prepared in business. It shows all cash…

Q: Annin Laboratories uses the weighted-average method to account for its work-in-process inventories.…

A: Direct material cost is the cost of raw material produced or purchased to produce the final…

Q: Which of the following statements regarding the recognition of expenses related to long-term…

A: Recognition of expenses in accounting refers to the process of recording and reporting the costs…

Q: For the following independent cases, determine whether economic income is present and, if so,…

A: Economic income refers to the increase in an individual's or entity's wealth or financial well-being…

Q: 3) Calculate the Cost of Raw Materials Used using the below info: RM Beginning Inventory $ 50,000…

A: Cost sheet is a method of allocating total costs into different categories. It helps to identify the…

Q: Logistics Solutions provides order fulfillment services for dotcom merchants. The company maintains…

A: Variable overheads are those costs which changes with change in activity level. Variance analysis…

Q: don't give answer in image format

A: Bond is an instrument issued by corporates to public which comes with fixed interest rate.A bond…

Q: Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses…

A: Variance Analysis:if actual production things eg; labor hours, labor rate, units produced are…

Q: Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution…

A: The contribution margin takes into consideration variable expenses only.Variable costs are costs…

Q: Ethel Company manufactures and sells desk lamps for hotel and motel rooms. Last year, it sold…

A: Budget means the expected value in coming future. Budgeted sales revenue means the amount of sale…

Q: Sarjit Systems sold software to a customer for $80,000. As part of the contract, Sarjit promises to…

A: Financial statements are those statements which are prepared at the end of accounting period. The…

Q: You have just sold your car for $50,000, but under the sales agreement, it won't receive the $50,000…

A: Present value is used to estimate the actual value of the current amount for the future period. This…

Q: Plum Corporation paid $700,000 for a 40% interest in Satin Company on January 1, 2013 when Satin's…

A: Investment means the amount invested in any other business and will be carried at cost price.

Q: TB Problem Qu. 9-426 Mcinerney Jeep Tours operates jeep tours... Mcinemey Jeep Tours operates jeep…

A: Answer:- Flexible budget meaning:- Budgets that are flexible can be changed to account for predicted…

Q: Bonita Company's inventory records show the following data: Inventory: January 1 Purchases: June 18…

A: Using FIFO method, the oldest inventory is sold out and newer inventory is left in the stock. The…

Q: Prepare a 2018 balance sheet for Rogers Corporation based on the following information: Cash =…

A: As per the concept of accounting, the assets are equal to the sum of the liabilities and…

Q: unTime Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of…

A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

Q: Effect of omitting adjusting entry At March 31, the end of the first month of operations, the usual…

A: Adjusting entries are reported in the books at the end of the period. These are recorded to adjust…

Q: Kirwan Company, with a break-even point at $459,900 of sales, has actual sales of $730,000, what is…

A: The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The…

Q: The net income reported on the income statement for the current year was $287,618. Depreciation…

A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…

Q: Princess Company's accounting records show the following for the month of July. July 6 July 11 July…

A: Under periodic stock verification, the entire stock is verified at a time at periodic intervals,…

Q: Required information [The following information applies to the questions displayed below.] Del Gato…

A: Lets understand the basics.Bank reconciliation is a statement drawn up by the business to verify the…

Q: On September 1, the beginning of its fiscal year, Blossom Ltd. had an inventory of 124 calculators…

A: Journal entries are the first step in the accounting process and serve as the foundation for…

Q: Insurance: You are still not done allocating your paycheck. Assume that you pay annually 0.5% of…

A: It is an agreement between the insurance company and the policyholder where the policyholder pays…

Q: Lindon Company is the exclusive distributor for an automotive product that sells for $26.00 per unit…

A: 1. CM Ratio: Contribution Margin Ratio, the percentage of selling price that covers expenses.2.…

Q: Direction: Prepare Trial Balance of balance, Income Statement, and Owner's Equity. In September of…

A: A trial balance is a summary showing the ending balances of all the ledger accounts. The trial…

Q: Skysong Company sells one product. Presented below is information for January for Skysong Company.…

A: Inventory valuation is based on the method of flow used by the organization. It can be the first in…

Q: Flow of accounts into financial statements The balances for the accounts that follow appear in the…

A: Income Statement Is One Of The Three Major Financial Statements. IT Shows The Revenues, Expenses And…

Question

the formula to calculate straight line depreciation is as follows

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Explanation for the correct option and reasons for support

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The estimated economic life of an asset is also known as ________. A. residual value B. book value C. salvage life D. useful life
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.
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?
Using the information from EB7, calculate depreciation using the straight-line method.
Depreciation of a plant asset is the process of ________. A. asset valuation for statement of financial position purposes B. allocation of the assets cost to the periods of use C. fund accumulation for the replacement of the asset D. asset valuation based on current replacement cost data
Depreciation Concepts Listed below are concepts and terminology related to depreciation. Required: Match each concept with the related terminology.
Depreciation expense under the invenroty system is a. Based on cost minus residual value b. Basically a FIFO approach to depreciable asset accounting c. The result of applying a depreciation rate to the original cost d. A measure of the change in the value of the depreciable asset
The formula for straight-line depreciation is O service life/(cost + residual value). O cost/service life. O(cost + residual value)/service life. O(cost - residual value)/service life.
Which of the following statements if not true? a. Depreciation is the process of allocating the purchase price of an asset minues its residual value to expense, for each period benefited by the asset. b. The cost of an asset includes all acquisition costs necessary to obtain the benefits to be derived from the asset. c. The service life of an asset is the measure of the number of years of service expected from the asset before its disposal. d. The residual value of an asset is the difference between the expected book value of the asset at the end of its service and the cost of disposal.
The relevant factor(s) in computing depreciation include: A. Cost.B. Residual value.C. Useful life.D. Depreciation method.E. All of these.
Straight-line depreciation per annum is defined as: a. Initial Cost / Useful Life b. Initial Cost c. Useful Life d. Initial Cost - Useful Life e. Initial Cost + Useful Life