Sum-of-the-year's-digits
Q: Depreciation, depletion, and amortization all involve the allocation of the cost of property, plant…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Which of the following statements is true about assessing recoverability of property, plant and…
A: The objective of the question is to identify the correct statement about assessing the…
Q: The analysis is most sensitive to changes in which component? a. Annual Revenue b. Initial…
A: Sensitivity Analysis is a financial model which is used in business analysis . It studies how target…
Q: Management of a company wants to inappropriately lower depreciation expense. Assume they are using…
A: Depreciation refers to the fall in the value of asset. There are various methods to calculate…
Q: What is the systematic periodic transfer of the cost of a fixed asset to an expense account during…
A: It is a measure of the wearing out, consumption or other loss of value of depreciable asset arising…
Q: Which of the following statements is true about assessing recoverability of property, plant and…
A: The objective of the question is to identify the correct statement about assessing the…
Q: When moving from the low end to the high end of the relevant range, straight-line depreciation…
A: Depreciation is a reduction in the value of an asset over the time period due to its wear and tear.…
Q: Which of the following is NOT a method commonly used to determine the residual value of a property?
A: 1.d) Hire an appraiser to perform a forward-looking appraisal of the property This is not an…
Q: In the summation (cost) method of valuation, which of the following steps is the ONLY one that a…
A: The summation method of valuation or cost method of valuation is the technique that is used to make…
Q: What element must be present when determining if an asset is a depreciating asset? a. An asset…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. depreciating…
Q: Which of the following depreciation methods will result in the most depreciation expense over the…
A: Depreciation is method to allocate the cost of the Assets over its useful life
Q: 23. A principal objection to the straight-line method of depreciation is that it A) tends to result…
A: Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of…
Q: In recording amortization of intangible asset, why isn't there an entry such as a credit to…
A: The objective of the question is to understand why the accounting treatment for amortization of…
Q: Depreciation is the reduction in the usable value of fixed assets due to normal wear and tear of…
A: Normal Depreciation: It refers to the reduction in the usable value of fixed assets due to normal…
Q: Which of these best explains fixed assets? Select one: a. Are of long life and are not purchased for…
A: Assets are the resources owned by an entity. These are usually of two kinds; Current and Fixed.
Q: Explain the steps of depreciation analysis with the help of a numerical example. (Note: each student…
A: Solution- In accounting terms, depreciation is defined as the reduction of recorded cost of a fixed…
Q: please i just need a multiple choice answer Opportunity cost can best be defined as the a.…
A: The answer is provided as follows:
Q: Which of the following payback methods considers the salvage value in its basic computations?
A: Payback method is a capital budgeting technique which is used to evaluate various investment…
Q: Companies that acquire intangible assets under IFRS may only utilize the revaluation model if the…
A: Here is the answer :
Q: When we can recognize a larger portion of depreciation in the early period, we will have a higher…
A: SLM Depreciation: It is the method of charging depreciation in which equal portion of depreciation…
Q: Which of the following will maximize net income by minimizing depreciation expense in the first year…
A: In the first year of asset's life, depreciation expense can be minimised by maximising net income by…
Q: Why are the costs of plant/long term assets recovered through depreciation vs. expensed out during…
A: Depreciation is referred to a decrease in the value of the fixed assets. It is a permanent loss. The…
Q: 5. 1.) What is the difference between current assets and plant and equipment? Do you think land…
A: AssetsThe resources owned by an individual or business is known as an asset. Enterprises have…
Q: What is depreciation? Why are depreciation methods important in the business arena? Explain the…
A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…
Q: Depreciation is a process that involves: a. Increasing the value of assets b. Distributing the cost…
A: Expense is the amount of money incurred by the entity to run the daily operations of the business.…
Q: It results not from a deterioration in the asset's ability to serve its intended purpose, but from a…
A: Depreciation is less in the value of asset. depreciation is a natural phenomenon in which the value…
Q: Many companies use an accelerated depreciation method because: A. It is required by the tax code. B.…
A: Depreciation is the allocation of cost of asset over the useful life of the asset.
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: depreciation
A: Accumulated depreciation is calculated by subtracting scrap value from its original cost of an…
Q: Assuming that there are no income taxes, which of the following is correct concerning depreciation?…
A: Depreciation is reduction in value of asset due to wear and tear of asset with the passage of time…
Q: The book value of a plant asset is equal to Select one: the fair value of the asset at the…
A: The book value of a plant asset is a term used in accounting to describe the net value of an asset.…
Q: All equipment costs will continue to be depreciated on a straight-line basis. For simplicity, ignore…
A: Working notes:
Q: Evaluate the following statements: S1. When buildings and improvements are constructed in connection…
A: Depreciation is the charge on assets for the usage of assets during the period. Extracting natural…
Q: Remodeling and rehabilitation: O Can usually be undertaken by the property manager without…
A: Rehabilitants and remodeling both are a different thing. Rehabilitations consists of renovating…
Q: Depreciation, depletion, and amortization deductions are not available for some types of property;…
A: Some assets' costs are not recovered because they do not qualify as trade assets, which is the…
Q: When adjusting for depreciation on a building, which of the following is one effect of the…
A: The accounting method of depreciation can be used to stretch out the expense of a tangible object…
Q: Multiple choice: a benefit of using an accelerated depreciation method is that a. it is preferred…
A: Accelerated depreciation method is a type of depreciation method in which the fixed assets are…
Q: Explain why the value of an asset is its current market value and not what you paid for it? Why is…
A: There are two methods for valuing anything. The first method is the historical cost method.…
Q: We normally record a long-term asset at the a. Cost of the asset only.b. Cost of the asset plus all…
A: We normally record a long-term asset at the cost of the asset plus all costs necessary to get the…
Q: What refers to the present worth of cost associated with an asset for an infinite period of time?…
A: Payback period is the time period of recovery of initial cash outflow from the cash flows of the…
Q: Why is depreciation expense recognized? Select one: a. To provide a better estimate of the market…
A: Depreciation expense is the systematic allocation of the cost of a long-term asset over its useful…
Q: A building acquired at the beginning of the year at a cost of $93,200 has an estimated residual…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: Depreciation under Diminishing Balance Method is calculated on? A. Scrap Value B. Book Value C. Cash…
A: One way to spread out the cost of a tangible item over its useful life is through depreciation. The…
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- Which one of the following is the proper dollar value of existing equipment to use in replacement analysis? A. Original cost B. Present market value if sold C. Present trade-in value D. Present book value E. Present market value if sold minus removal and selling expensesWarner Borg Is a leading global supplier of highly engineered automotive systems and components primarily for powertrain applications. The following note was contained in its recent annual report: NOTE 3.INVENTORIES, NET aN of December 31 (in millionsm) Current Year $ 321.7 Prior Year $ 282.0 Raw materials and supplies Work in progess Finished goods FIFO inventories 90.2 79.2 117.6 116.8 528.7 478.8 (16.5) $ 462.3 LIFO reserve (18.4) $ 510.3 Total inventories, net Required: 1. What amount of ending inventory would have been reported in the current year if Warner Borg had used only FIFO? (Enter your answer in millions rounded to 1 decimal place.) 2. The cost of goods sold reported by Warner Borg for the current year was $6,598.9 million. Determine the cost of goods sold that would have been reported if Warner Borg had used only FIFO for both years. (Enter your answer in millions rounded to 1 decimal place.) 3. To lower the cash outflows for taxes, which of the following should the…Depreciation is the reduction in the usable value of fixed assets due to normal wear and tear of time. Depreciation is an indirect non – cash expenditure which is provided on SLM or WDV basis. Rahul is new junior accountant with Hard Work Mills Private Limited he wants to understand normal depreciation differs from additional depreciation. As a tax adviser, guide him on the two concepts and discus the cases where additional depreciation is not allowed
- Hi! help me with this please. Thank you so much! TRUE OR FALSE. EXPLAIN. Depreciation is not considered in the computation of the payback period as the method does not consider the time value of money.Question: Which method of depreciation results in a higher depreciation expense in the early years of an asset's life, making it more suitable for assets that rapidly lose their value? A) Straight-Line Depreciation B) Declining Balance Depreciation C) Units-of-Production Depreciation D) Sum-of-the-Years'-Digits DepreciationPlace T or F in front of each of the following statements. 1. The straight-line method of depreciation is based on the assumption that depreciation expense can be regarded as a constant function of time. 2. Plant assets should be written down (below cost) when their market value has declined temporarily. 3. The accounting profession has developed specifically recommended procedures for recording appraisal increases with respect to plant assets. 4. An asset's cost minus its accumulated depreciation equals its book value. 5. The sum-of-the-years'-digits method of depreciation ignores salvage value in the computation of an asset's depreciable base. 6. When using the double-declining balance method of determining depreciation, a declining percentage is applied to a constant book value. 7. The book value of plant assets initially declines more rapidly under decreasing-charge methods than under the straight-line method. 8. Accounting depreciation is computed by…
- a buyer purchased a home using a va loan. an appraiser was assigned to estimate the value of the property for the lender. the appraised value was less than the contract price. if the buyer really wants the property which of the following choices is the buyers best option do nothing because the seller must sell the property at the appraised value Hire an appraiser and see if a second appraisal yields a higher appraised value seek an fha lender who will automatically make up the difference between the contract price and the appraised value make up the difference between the contract price and appraised value in cashWhich of the following statements about depreciation is not true? A. Depreciation does not mirror the actual loss of value over time. B. Depreciation is the allocation of the asset’s cost to expense over the expected years of use. C. If the fair value of the asset increases, depreciation is reversed to reflect the change in value. D. U.S. GAAP requires depreciation methods to be systematic and rational.Depreciation is the allocation of the cost of a plant asset over its useful life in a rational and systematic manner. The asset being depreciated remains at historical cost and the accumulated depreciation account serves as a contra account to lower the asset balance on the books. Question: Explain why this lowered value is, or is not, the market value of the asset in any given accounting period. Support your answer with examples explaining your choice.
- True or False: increasing the salvage value increases depreciation expense.FalseTrue or False: decreasing the useful life increases depreciation expense.True Why are the answers false and true? Please explain!Which depreciation method will compute the most depreciation expense over the life of the asset? O Declining-balance will produce the most depreciation expense. O Units-of-production will produce the most depreciation expense. O All methods will produce equal depreciation expense over the life of the asset. O Straight-line will produce the most depreciation expenseFrom an economic point of view, which activity is regarded as an undertaking to prevent a loss in value, rather than an activity undertaken to add value to the property? maintenance O modernization O rehabilitation O remodeling