How do the estimated salvage and the two book values

Reference no: EM131006387

1. When declining balance (DB) depreciation is applied, there can be three different depreciation rates involved-d, dmax, and dt. Explain the differences between these rates.

2. An engineer with Accenture Middle East BV in Dubai was asked by her client to help understand the difference between 150% DB and DDB depreciation. Answer the questions if B = $180,000, n = 12 years, and S = $30,000.

a. What are the book values after 12 years for both methods?

b. How do the estimated salvage and the two book values after 12 years compare in value?

c. Which of the two methods, when calculated correctly considering S = $30,000, writes off more of the first cost over the 12 years?

Reference no: EM131006387

Questions Cloud

Determine the cash flow from operating activities for the : Selected financial statement information is reported below for Cameron Corporation for the year ended December 31, 2012. Using the above data, determine the cash flow from operating activities for the year using the direct method. Show your work.

Develop the depreciation and book value schedules : Develop the depreciation and book value schedules using the GDS MACRS method for oil and gas drilling equipment that cost $1.2 million. A salvage value of $300,000 is estimated.

Determine the depreciation for each method : For tax depreciation the SL method with n = 10 years was used, but for book depreciation, Boyditch applied the DDB method with n = 7 years and neglected the salvage estimate. The company sold the assets today for $12,500. Compare this amount with ..

The gorman group issued bonds on june 2011 : Prepare the journal entry to record their issuance by The Gorman Group on June 30, 2011.

How do the estimated salvage and the two book values : An engineer with Accenture Middle East BV in Dubai was asked by her client to help understand the difference between 150% DB and DDB depreciation. Answer the questions if B = $180,000, n = 12 years, and S = $30,000. What are the book values afte..

What would be the net amount of the liability myriad : What would be the amount related to the bonds that Myriad would report in its income statement for the year ended December 31, 2011?

Find an equation of the tangent plane at p : Suppose you need to know an equation of the tangent plane to a surface S at the point P(2, 1, 3). You don't have an equation for S but you know that the curves. Find an equation of the tangent plane at P.

Prepare the journal entry to record the purchase of the bond : Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2011.

Set of typical family relationships spouse : Model a set of typical family relationships- spouse, father, and mother-in a single 3NF relation. Also include the nonkey attributes name and birth date. Assume that each person has only one spouse, one father, and one mother.

User Account

All Pages