The optimal switch from declining balance depreciation to straight-line depreciation occurs when what condition is met? a. The first time the depreciation deduction from straight-line depreciation is greater than thesalvage value of the asset b. The first time the depreciation deduction from straight-line depreciation is less than would result if declining balance were continued c. The first time the depreciation deduction from straight-line depreciation is greater than would result if declining balance were continuedd. The asset is no longer in service.
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.
The optimal switch from declining balance
salvage value of the asset b. The first time the depreciation deduction from straight-line depreciation is less than would result if declining balance were continued c. The first time the depreciation deduction from straight-line depreciation is greater than would result if declining balance were continued
d. The asset is no longer in service.
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