Explain the double-declining technique

Assignment Help Financial Accounting

Reference no: EM135884

On 31^st December, 2011, Audubon Inc. exchanged machines A and B for a new machine C. Audubon also received $5,000 in cash. The transaction is deemed to lack commercial substance.

Machine A was acquired on 1^st January, 2008, at a cost of $60,000. The machine has an estimated 10-year useful life and scrap value of $10,000. This machine is depreciated using straight-line depreciation.
Machine B was acquired on 1^st January, 2010, at a cost of $70,000. The machine has an evaluated five-year useful life and scrap value of $5,000. This machine is being depreciated using the double-declining technique.
Machine C has a fair value of $63,400 at 31^st December, 2011.

Reference no: EM135884

Questions Cloud

Implicated the fovea and its cells : Whilst playing lacrosse, Frank took a blow to the back of his neck. When she looked toward the stars but not directly at them, she could see them. Describe what was happening. Implicated in this is the fovea and its cells.

Explain the company''s existing policy regarding dividends : Explain the company's existing policy regarding dividends and/or share repurchases Has the policy changed considerably over time?

Purpose a lease amortization schedule for the lessor : What kind of lease is this to Lucas? Describe and show how the lease payment was evaluated

Inverse demand curve : Solve for steady-state level of captial and output. What savings rate would be necessary to achieve a steady-state output of 150.

Explain the double-declining technique : The machine has an evaluated five-year useful life and scrap value of $5,000. This machine is being depreciated using the double-declining technique.

Producer under monopoly : Compare the competitive price charged and quantity produced under perfect competition and monopoly. Other than identifying the presence of only one producer under monopoly, why do we tend to see this differential.

Define the weight lost through the procedure : Assume two samples of water are taken just under the surface on a lake, one sample in the early morning, and the other in the late afternoon. Harriet had liposuction several years ago, but has since gained back all the weight lost through the procedu..

Generate an in vitro system for the formation of copii : Your friend is trying to generate an in vitro system for studying the formation of COPII vesicles. He finds that to get well-organized vesicle budding from artificial membranes, he needs to add the coat proteins, the Sar1 GTP-binding protein.

Three adm executives : One of the three ADM executives was actually an informant who tipped off the Feds about this conspiracy. Which executive was he. Why did he rat out his co-workers.

User Account

All Pages