Which method will produce the highest charge to income in year 4?Which method will produce the highest book value for the asset at the end of year 3?If the asset is sold at the end of year 3, which method would yield the highest gain (or lowest loss) on disposal of the asset? E112 (LOD (peprec- Conceptual Understonding)Rembrandt Company acautred a Plant assetat the besinning of Year I, The asset has an estimatedService 1ife of E Years, An emplotee has Prepared deprec.Schedyles for this asset using three different methodsto Compare the results of ysing one method with theresults of using other methods.You are to assume that the followingSchedules have been Correctly Prepared for this asset using(I) the straighttine method, (2) the Sum-of-the- Years-digits me thod, and (3) the doyble-declining-balance methodiSym-ofthe-YearsPigitsDouble-Dectining-BalanceYearStraight-Lire$ 9000$150001300072004,320I2,000y000yo0090004bo005.Total

It is clearly given in the question that we have to assume that the above schedules prepared by the…

Which method will produce the highest charge to income in year 4? Which method will produce the highest book value for the asset at the end of year 3? If the asset is sold at the end of year 3, which method would yield the highest gain (or lowest loss) on disposal of the asset?

Which method will produce the highest charge to income in year 4? Which method will produce the highest book value for the asset at the end of year 3? If the asset is sold at the end of year 3, which method would yield the highest gain (or lowest loss) on disposal of the asset?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

E112 (LOD (peprec- Conceptual Understonding)
Rembrandt Company acautred a Plant asset
at the besinning of Year I, The asset has an estimated
Service 1ife of E Years, An emplotee has Prepared deprec.
Schedyles for this asset using three different methods
to Compare the results of ysing one method with the
results of using other methods.
You are to assume that the following
Schedules have been Correctly Prepared for this asset using
(I) the straighttine method, (2) the Sum-of-the
- Years-digits me thod, and (3) the doyble-declining-
balance methodi
Sym-of
the-Years
Pigits
Double-
Dectining-
Balance
Year
Straight-Lire
$ 9000
$15000
13000
7200
4,320
I2,000
y000
yo00
9000
4
bo00
5.
Total

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