Explain how the double-declining-balance method is computed

Assignment Help Financial Accounting

Reference no: EM13133487

Depreciation is a process to allocate the cost of long-life assets to each period's income statement and adjusts the value of the asset on the balance sheet. (1) Explain how the Double-declining-balance method is computed and (2) provide an example of how this method could be used on a new delivery truck purchased for $30,000 to be used for 4 years with a salvage value of $5,000 for year one only.

Reference no: EM13133487

Questions Cloud

What is the total pressure in the flask : A 1.30 g sample of dry ice is added to a 745 mL flask containing nitrogen gas at a temperature of 25.0 degrees Celcius and a pressure of 715 mmHg.

What is the value of the ending inventory as determined : Inventory valuation methods allow management to select a method that best fits their business model. Given the following data, what is the value of the ending inventory as determined by the First in First out (FIFO) method?

Determining vector-gradient : The temperature of a plate at the point (x,y) is given by T(x,y) = 300+ 3x^2 -2y^2. A heat hating ant is located at the point (3,2).

How many students expect will be unable to complete exam : Assume that the class has 60 students and that the examination period is 90 minutes in length. How many students do you expect will be unable to complete the exam in the allotted time (0 decimals)?

Explain how the double-declining-balance method is computed : Explain how the Double-declining-balance method is computed and provide an example of how this method could be used on a new delivery truck purchased for $30,000 to be used for 4 years with a salvage value of $5,000 for year one only.

What is the roe for a firm : What is the ROE for a firm with times interest earned ratio of 2, a tax liability of $1 million and interest expense of $1.55 million if equity equals $1.5 million?

What is the depreciation expense for year 1 : On January 1, year 1, an entity acquires a new machine with an estimated useful life of 20 years for 100,000. The machine has an electrical motor that must be replaced every five years at an estimated cost of 20,000.

Compute the percentage of the allowance for doubtful account : Compute the percentage of the allowance for doubtful accounts to the accounts and notes receivable as of December 31, 2009, for The XYZ Corporation.

Probability that big-screen television buy in sample : What is the probability that a randomly selected big-screen television purchase in this sample is a purchase of a plasma-screen television?

User Account

All Pages