Under which method of depreciation the amount of depreciation every year remains the same a. Diminishing balance method b. Double declining depreciation method c. Units of production method d. Straight line method

Under which method of depreciation the amount of depreciation every year remains the same a. Diminishing balance method b. Double declining depreciation method c. Units of production method d. Straight line method

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8MC: An accelerated depreciation method that takes more expense in the first few years of the assets life...

See similar textbooks

Related questions

Q: Which of the following methods applies a declining depreciation rate each period to an asset's…

A: Sum-of-the-years' digits Method: Calculating the predicted depreciation of an asset over time using…

Q: Complete the sum-of-the-years' digits method of depreciation. Useful Life (years) Sum-of-the- Years'…

A: Depreciation- The word Depreciation is the reduce in the value of assets and the method used to…

Q: The method of depreciation which is also known as Accelerated depreciation method is a. Diminishing…

A: Depreciation expense is the reduction in the value of assets due to the wear and tear on that asset.…

Q: Complete using the declining-balance method of depreciation. Round to the nearest hundredth of a…

A: (1) Straight Line Method of Depreciation : Depreciation Rate = 1Useful Life (years)X 100 (2)…

Q: Straight-line, sum of the year's digits and double declining balance are types of a. Appreciation b.…

A: Fixed Assets: Fixed Assets are those assets which are acquired by company for utilizing them in…

Q: Which one of the following methods charges depreciation at a rate double to the one used in straight…

A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed…

Q: Compute depreciation under units-of-activity method. structions a. Compute the depreciable cost per…

A: Depreciation means fall in the value of tangible fixed assets because of its usage or with efflux of…

Q: declining-balance method of depreciation

A: Declining balance method of depreciation can also be called the diminishing balance method or the…

Q: Combo Co. computes depreciation on the straight-line method. Based on the information presented, the…

A: Composite Rate= Total Annual Depreciation for All AssetTotal Cost of All Asset Composite Life=…

Q: -Which method of depreciation considers that the asset has greater service potential in the earlier…

A: Depreciation refers to the process of estimating the decline in the value of a tangible asset owned…

Q: Prepare depreciation schedules for the life of the asset under the following depreciation methods:…

A: Methods of Depreciation Straight Line Method (SLM): Under SLM method, a fixed portion of asset is…

Q: Which depreciation method results larger depreciation expense in the early years of an asset's life…

A: Which depreciation method results larger depreciation expenses in the early years of an asset's life…

Q: Determine the amount of depreciation expense for Year 1 and Year 2 using each of the following…

A: Depreciation :— it means Decrease in the Value of Fixed Assets due to their use of Assets.…

Q: Required: 1. Determine the amount of depreciation expense for the three years ending December 31 by…

A: Depreciation is a reduction in the value of fixed assets to normal wear & tear and use of fixed…

Q: Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost…

A: Given that: Original cost = $90000 Salvage value = $5000 Useful life = 5 years

Q: Under regular accelerated MACRS the straight line method is used in years where the amount of…

A: The straight-line depreciation method gives the same amount of depreciation per year throughout the…

Q: Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: The total amount of depreciation taken over the life of a depreciable asset should be less if the…

A: The double declining balance (DDB) method is a type of declining balance method that instead uses…

Q: Under which depreciation method may depreciation reduce the book value below the asset's residual…

A: Depreciation Definition: Decreasing value of fixed Asset during the period of time. According to…

Q: Under what depreciation method(s) is an asset’s bookvalue used to calculate depreciation each…

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Q: Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost…

A: Solution a: annual depreciation by the straight-line method = (Cost - residual value) / useful life…

Q: The depreciation method in which the depreciable cost of an asset is apportioned equally over its…

A: a) in straight line method of depreciation Depreciation will be apportioned equally over its life…

Q: Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost of…

A: The question is related to Depreciation Accounting. Required a. Calculate Depreciation on SLM…

Q: A storage tank acquired at the beginning of the fiscal year at a cost of $95,000 has an estimated…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/20 years) x 2 = 10%

Q: Determine the machine's second-year depreciation using the double-declining-balance method.

A: Depreciation is defined as the reduction in the value of the fixed asset due to its usage. It is a…

Q: The depreciation method that produces larger depreciation expense during the early years of an…

A: Any depreciation technique that allows for the recording of larger depreciation expenditures in…

Q: It charges the same amount of expense to each period of the asset's useful life. This referes to…

A: Solution- Straight line depreciation is a common method of depreciation where the value of a fixed…

Q: What is the amount of depreciation, using the double decaying balance method for the second year of…

A: In a double declining balance method, the depreciation is charged at higher rate in its initial year…

Q: Determine the depreciation for the second year using the double-declining-balance method.

A: Double-declining balance method Double Declining Balance Method is one of the accelerated methods…

Q: Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost of…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: SL for straight-line and DDB for double-declining-balance. Residual Service Life Depreciation…

A: Double declining balance method Depreciation rate as per DDB method = 2/useful life Depreciation…

Q: a. Compute the depreciation expense to be recognized each calendar year for financial reporting…

A: Half year convention It is used to record the depreciation in the year in which asset is acquired.

Q: Which of the statements is incorrect concerning the depreciation methods? a) Under the output…

A: The questions are multiple choice questions Required Choose the Correct Option

Q: depreciation for the current year using the composite method

A: Asset name Cost Residual value Depreciable amount (Cost -Residual value) Useful life in years…

Q: Under which method of depreciation the amount of depreciation every year remains the same a. Double…

A: Depreciation is defined as diminution in value of monetary tangible asset due to regular wear and…

Q: a. Determine the amount of annual depreciation by the straight-line method. $ b. Determine the…

A: Given: Cost Of tank 95000 Residual Value 5000 Life Of Tank 25 Method Of Depreciation Straight…

Q: In a written down value method, the amount of depreciation O a. Increases year after year O b.…

A: Please see the next step for the solution

Q: Which method almost always produces the most depreciation in the first year? a. Units-of-production…

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to…

Q: Compute the first-year depreciation using the straight-line method. Straight-Line Depresiation…

A: Straight line method of depreciation is that method in which business charges full cost of asset as…

Q: Prepare depreciation schedules for the following methods a) Double Declining Balance Method b)…

A: Given in the question: Date of Purchase 01 January, 2014 Cost of Equipment 80000…

Q: A storage tank acquired at the beginning of the fiscal year at a cost of $129,600 has an estimated…

A: Straight line depreciation=Cost of the asset-Residual valueEstimated life of the…

Q: Depreciation by Twe Methods A storage tank acquired at the beginning of the fiscal year at a cost of…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Using the following information, create a Double declining, depreciation schedule. Van cost:34,440…

A: Double declining balance method of depreciation is the accelerated method of depreciation, which…

Q: Answer the following questions: Required: a-1. Find the discussion of Property, Plant, and Equipment…

A: Business organizations are required to charge the depreciation expense on their assets so as to…

Q: Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost…

A: Depreciation is the reduction in value of fixed assets over the life of the asset. There are several…

Q: Contrast the effects of the three depreciation methods on (1) depreciation expense, (2) net income,…

A: 3.) Accumulated Depreciation 4.)Carrying Amount Straight line Depreciation method Increases by…

Q: A storage tank acquired at the beginning of the fiscal year at a cost of $90,000 has an estimated…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Concept explainers

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

Question

Video 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

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Audit procedures for items of Financial Statement

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

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.
An accelerated depreciation method that takes more expense in the first few years of the assets life is ________. A. units-of-production depreciation B. double-declining-balance depreciation C. accumulated depreciation D. straight-line depreciation
The straight-line method of depreciation allocates the cost of an asset more rapidly than the sum-of-the-years-digits method.
Vorst depreciates Asset A on the double-declining-balance method. How much depreciation expense should Vorst record in 2020 for Asset A? a. 32,000 b. 25,600 c. 14,400 d. 6,400
Which depreciation method would result in the same depreciation expense amount regardless of the partial period cor Select one: a. Sum-of-the-years'-digits b. Declining-balance c. Units-of-production d. Straight-line
Which method of computing depreciation expense results in the amount of depreciation for each year depending on the units-of-production for that year? A. Straight line B. Double-declining balance C. Units-of-production D. Sum-of-the-years digits E. None of the above
Which method of computing depreciation expense results in the same amount of depreciation each year? A. Straight line B. Double-declining balance C. Units-of-production D. Sum-of-years digits E. None of the above
Which of the following methods applies a declining depreciation rate each period to an asset's constant value? a.Double-declining-balance methodb.Straight-line methodc.Sum-of-the-years'-digits methodd.Units-of-production method
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 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.
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.
4- Under which method of depreciation the amount of depreciation every year remains the same a. Double declining depreciation method b. Straight line method c. Units of production method d. Diminishing balance method