Full year of depreciation expense

Assignment Help Accounting Basics

Reference no: EM13133471

Captain Inc. purchases a depreciable asset for $100,000. The life of the asset is 10 years and it has an estimated salvage value of $10,000. Captain Inc. takes a full year of depreciation expense in the year the asset is acquired. Which of the following statements is true?

A) In year three using straight-line depreciation the amount will be $10,000.

B) Changing depreciation methods in year four will be considered a change in accounting principle.

C) Depreciation under the double-declining method (200%) in year one will be equal to $18,000.

D) Changing depreciation methods in year two will require prospective application.

Reference no: EM13133471

Questions Cloud

What journal entries should be recorded by barrell company : Ignoring income taxes, what should be the expenses incurred by Barrell from this lease for the year ended December 31, 2008? What journal entries should be recorded by Barrell Company on January 1, 2008?

Complete a time-sensitive project : Rigorously analyze the issues you have identified. Base your arguments on data in the case. Demonstrate your critical thinking ability, creativity, and insight, as well as appropriate use of the tools provided in the text or in previous courses.

What is the company contribution margin : Last month when Harrison Creations, Inc., sold 40,000 units, total sales were $300,000, total variable expenses were $240,000, and fixed expenses were $45,000.

How would the store account for a purchase using discount : The coupons expire in one year. The store normally recognizes a gross profit margin of 40% of the selling price on video games. How would the store account for a purchase using the discount coupon?

Full year of depreciation expense : Captain Inc. purchases a depreciable asset for $100,000. The life of the asset is 10 years and it has an estimated salvage value of $10,000. Captain Inc. takes a full year of depreciation expense in the year the asset is acquired. Which of the fol..

What major disadvantage of this method : Delmar Corporation is considering the use of residual income as a measure of the performance of its divisions. What major disadvantage of this method should the company consider before deciding to institute it?

What is expected number of contracts that company will win : What is the expected number of contracts that it will win? What is the expected profit for each contract? What is the company's expected total profit on these three bids?

Given this data the annual fixed costs are : Great Corp. sells its product for $30. Variable costs are $10 per unit. At the current volume of 40,000 units sold per year, the company is just breaking even. Given this data, the annual fixed costs are?

What is the total cost of job number : Direct labour is paid at a rate of RM8 per hour. Production overheads are absorbed at a rate of RM40 per direct labour hour and non-production overheads are absorbed at a rate of 150% of prime cost. What is the total cost of job number 607?

User Account

All Pages