Double-declining-balance method: It is an accelerated method of depreciation under which the depreciation declines in each successive year until the value of asset becomes zero. Under this method, the book value (original cost less accumulated depreciation ) of the long-term asset is decreased by a fixed rate. It is double the rate of the straight-line depreciation. Use the following formula to determine the annual depreciation: Annual depreciation = Purchase price × ( 2 Useful life ) To identify: which depreciation method ignores residual value until the last year of depreciation.

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Answer 1

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Chapter 9, Problem 8RQ

To determine

Double-declining-balance method: It is an accelerated method of depreciation under which the depreciation declines in each successive year until the value of asset becomes zero. Under this method, the book value (original cost less accumulated depreciation) of the long-term asset is decreased by a fixed rate. It is double the rate of the straight-line depreciation. Use the following formula to determine the annual depreciation:

Annual depreciation = Purchase price × (2Useful life)

To identify: which depreciation method ignores residual value until the last year of depreciation.

To determine

To explain: the reason for ignoring the residual value until the last year of depreciation.

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Markowis Corp has collected the following data concerning its maintenance costs for the pest 6 months units produced Total cost July 18,015 36,036 august 37,032 40,048 September 36,036 55,055 October 22,022 38,038 November 40,040 74,575 December 38,038 62,062 Compute the variable coot per unit using the high-low method. (Round variable cost per mile to 2 decimal places e.g. 1.25) Compute the fixed cost elements using the high-low method.

Use the following data to determine the total dollar amount of assets to be classified as current assets. Marigold Corp. Balance Sheet December 31, 2025 Cash and cash equivalents Accounts receivable Inventory $67000 Accounts payable $126000 86500 Salaries and wages payable 11100 149000 Bonds payable 161500 Prepaid insurance 83000 Total liabilities 298600 Stock investments (long-term) 193000 Land 199500 Buildings $226000 Common stock 309400 Less: Accumulated depreciation (53500) 172500 Retained earnings 475500 Trademarks 133000 Total stockholders' equity 784900 Total assets $1083500 Total liabilities and stockholders' equity $1083500 ○ $269100 $385500 ○ $236500 ○ $578500

Answer 2

Question

Chapter 9, Problem 8RQ

To determine

Double-declining-balance method: It is an accelerated method of depreciation under which the depreciation declines in each successive year until the value of asset becomes zero. Under this method, the book value (original cost less accumulated depreciation) of the long-term asset is decreased by a fixed rate. It is double the rate of the straight-line depreciation. Use the following formula to determine the annual depreciation:

Annual depreciation = Purchase price × (2Useful life)

To identify: which depreciation method ignores residual value until the last year of depreciation.

To determine

To explain: the reason for ignoring the residual value until the last year of depreciation.

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Answer 3

Question

Chapter 9, Problem 8RQ

To determine

Double-declining-balance method: It is an accelerated method of depreciation under which the depreciation declines in each successive year until the value of asset becomes zero. Under this method, the book value (original cost less accumulated depreciation) of the long-term asset is decreased by a fixed rate. It is double the rate of the straight-line depreciation. Use the following formula to determine the annual depreciation:

Annual depreciation = Purchase price × (2Useful life)

To identify: which depreciation method ignores residual value until the last year of depreciation.

To determine

To explain: the reason for ignoring the residual value until the last year of depreciation.

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Answer 4

Question

Chapter 9, Problem 8RQ

To determine

Double-declining-balance method: It is an accelerated method of depreciation under which the depreciation declines in each successive year until the value of asset becomes zero. Under this method, the book value (original cost less accumulated depreciation) of the long-term asset is decreased by a fixed rate. It is double the rate of the straight-line depreciation. Use the following formula to determine the annual depreciation:

Annual depreciation = Purchase price × (2Useful life)

To identify: which depreciation method ignores residual value until the last year of depreciation.

To determine

To explain: the reason for ignoring the residual value until the last year of depreciation.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 8RQ

To determine

Double-declining-balance method: It is an accelerated method of depreciation under which the depreciation declines in each successive year until the value of asset becomes zero. Under this method, the book value (original cost less accumulated depreciation) of the long-term asset is decreased by a fixed rate. It is double the rate of the straight-line depreciation. Use the following formula to determine the annual depreciation:

Annual depreciation = Purchase price × (2Useful life)

To identify: which depreciation method ignores residual value until the last year of depreciation.

To determine

To explain: the reason for ignoring the residual value until the last year of depreciation.

Answer 6

Chapter 9, Problem 8RQ

To determine

Double-declining-balance method: It is an accelerated method of depreciation under which the depreciation declines in each successive year until the value of asset becomes zero. Under this method, the book value (original cost less accumulated depreciation) of the long-term asset is decreased by a fixed rate. It is double the rate of the straight-line depreciation. Use the following formula to determine the annual depreciation:

Annual depreciation = Purchase price × (2Useful life)

To identify: which depreciation method ignores residual value until the last year of depreciation.

Answer 7

Chapter 9, Problem 8RQ

To determine

Double-declining-balance method: It is an accelerated method of depreciation under which the depreciation declines in each successive year until the value of asset becomes zero. Under this method, the book value (original cost less accumulated depreciation) of the long-term asset is decreased by a fixed rate. It is double the rate of the straight-line depreciation. Use the following formula to determine the annual depreciation:

Annual depreciation = Purchase price × (2Useful life)

To identify: which depreciation method ignores residual value until the last year of depreciation.

Answer 8

To determine

To explain: the reason for ignoring the residual value until the last year of depreciation.

Answer 9

To determine

To explain: the reason for ignoring the residual value until the last year of depreciation.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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Solution Summary: The author explains the double-declining-balance method, which ignores residual value until the last year of depreciation.

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To explain: the reason for ignoring the residual value until the last year of depreciation.

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