Double declining balance depreciation

Assignment Help Accounting Basics

Reference no: EM13259421

The CEO of Herald Corporation hasasked you to help him describe the effects of different depreciation methods. Herald recently purchased a new machine with a capitalized cost of $500,000. The machine has an expected life of 5 years and a zero residual value. Select the best response from those belowregarding depreciation for this asset.

A) if we choose double declining balance depreciation rather than straight-line, depreciation expense in the first two years of this asset's life will be lower

B) if we choose double declining balance depreciation rather than straight-line depreciation, total assets will be greater at the end of each of the first two years of this asset's life

C) if we choose double declining balance depreciation rather than straight-line, net income for the first two years of this asset's life will be lower

D) more thanone of the above statements are correct

E) all of theabove statements are correct

F) none ofthe above statements are correct

Reference no: EM13259421

Questions Cloud

Estimated revenues control account : The estimated revenues control account of star city general fund is eliminated when:

Where must the object be placed : A converging lens with a focal length of 31 cm is used to form an image on a screen that is 2.7 m to the right the lens. Where must the object be placed

Total expenses for january : Larken Company's records show the following for the month of January: Total expenses for January were:

What is average velocity of an electron throughout the wire : A current of 1600 A exists in a rectangular (0.4-by-16cm) bus bar. The current is due to free electrons moving through the wire at an average velocity of v meters/second. If the concentration of free electrons is 10^29 electrons per cubic meter

Double declining balance depreciation : if we choose double declining balance depreciation rather than straight-line, depreciation expense in the first two years of this asset's life will be lower

Which manager has the better risk adjusted return : Manager B shows a return of 12% with a standard deviation of 6%. If the risk free rate is 5% which manager has the better risk adjusted return?

Considered a binding contract by american law : Which of the following will be considered a binding contract by American law? Why? Laura offers to give Kenneth a novel if he promises to pick it up from her house. Kenneth accepts.

Prepare schedule of cash collections for july : Duffy Corporation hasprepared the following sales budget: Month. Prepare a schedule of cash collections for July through September.

Determine the angular speed of the sphere : A uniform solid sphere of mass 1.5 kg and diameter 30.0 cm starts from rest and rolls without slipping down a 35° incline that is 7.0 m long. Determine the angular speed of the sphere about its center at the bottom of the incline

User Account

All Pages