On January 2, 2021, Archer Company, a skateboard manufacturer, installed a computerized machine in its factory at a cost of $168,000. The machine's useful life was estimated at four years or a total of 180,000 units with a $24,000 trade-in value. Archer Company's year-end is December 31. Calculate depreciation for each year of the machine's estimated useful life under each of the following methods: (Do non re intermediate calculations.) a. Straight-line b. Double-declining-balance c. Units-of-production, assuming actual units produced were: Year Units Year 2021 2022 2023 2024 Total 2022 2023 2024 2021 39,700 43,250 54,000 70,000 Straight-Line Double-Declining-Balance Units-of-Production

Q: What exactly does the word "noncontrolling interest" imply in this context?

A: Non-controlling Interest: Non-controlling interest is the equity not attributable, directly or…

Q: What is fraud?

A: Misstatement risk: It implies to a risk that the financial statements of the company are…

Q: Which of the following conditions is not necessary for a fraud to occur? Select one: a. Explanation…

A: Following conditions are necessary for a fraud to occur: 1. Pressure 2. Opportunity 3.…

Q: What items could increase the risk of material misstatement?

A: Risk of material misstatement (ROMM) is a risk that the financial statements when audited will…

Q: Actions that may be taken to address risks include acceptance, avoidance, mitigation or transfer.…

A: After the risk has been identified and assessed, the project team develops a risk mitigation plan,…

Q: Why does FASB like the retrospective approach? Does it always have to be used?

A: The FASB stands for the Financial Accounting Standards Board. It is a non-profit organization that…

Q: When is independence impaired under PCAOB standards?

A: Independence would be considered to be impaired if a covered member accepts more than a token gift…

Q: What rules or policies should be developed to avoid the ethical problem?

A: Ethical problems: These kinds of problems arise when while making decisions neither of the options…

Q: What is a reasonableness test?

A: Reasonableness tests is an analytical procedure used to examine the validity of the accounting…

Q: Identify all major assumptions of the CAPM, how they can be violated, and the implications of these…

A: Capital Asset Pricing Model (CAPM) was developed by Willian F. Sharpe and John Linter keeping in…

Q: So why would we not use standard deduction?

A: Standard deduction is the term which is used in the accounting and it is the portion of income that…

Q: For practical applicationsas opposed to theoretical considerations, which ismore relevant, the CML…

A: Security market line (SML) or Capital market line (CML): The capital market line appears the…

Q: 5) What are common limitations of Internal Controls? a) Human Error b) Human Fraud c) Cost-Benefit…

A: Internal Control are policies and procedures used  by the management to make the efficient use of…

Q: Does the use of ghost-ticking would violate what pillar of character?

A: Making a mark that suggests you confirmed them when you didn't would be called "ghost ticking."…

Q: FASB is considered to be the primary beneficiary of the conceptual framework. Select one: True False

A: The Financial Accounting Standards Board (FASB) is a private, nonprofit organization that sets…

Q: What does a deficiency judgment mean?

A: Deficiency judgement refers as if borrower takes money from a lender and he is  fails to return back…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.