Which method of depreciation will result in a higher net income during the first year the asset is in use? Question 25 options: straight line sum-of-the-year's digits declining balance double declining balance
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Which method of
Question 25 options:
straight line
sum-of-the-year's digits
declining balance
double declining balance
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- QUESTION 19 Which method of depreciation will result in the greatest depreciation charge in the last year of the asset's useful life? Double-declining balance Straight-line Sum-of-the-years' digits Triple-declining balanceDepreciation The declining balance method is an account- ing method in which the amount of depreciation taken each year is a fixed percentage of the present value of the item. If y is the value of the item in a given year, the depreciation taken is ay for some depreciation rate a with 0< a < 1, and the new value is (1 – aly. (a) If the initial value of the item is yo, show that the value after n years of depreciation is (1 – a)"yo. (b) At the end of T years, the item has a salvage value of s dollars. The taxpayer wishes to choose a depreciation rate such that the value of the item after T years will equal the salvage value (see the figure). Show that a = 1-Vs/yo.QUESTION 29 Which of the following statement best describes depreciation? a. It is a means of spreading the payment for non-current assets over a period of years Ob.It is a decline in the market value of assets Oc. It is a means of spreading the cost of non-current assets over the estimated useful life d.It is a means of estimating the amount of money needed to replace the assets
- Question 8 When computing depreciation expence of PPE, both straight-line depreciation method and the double-declining-balance depreciation method produce the same: O A. annual depreciation expense the asset. B. annual tax paid. O C. annual book value of the asset. O D. total depreciation expense over the asset's useful life.Total amount of depreciation of an asset cannot exceed its: None of these Scrap value Depreciation value Market value Under the diminishing balance method of depreciation, it: None of them Remain constant every year Increases every year Decrease every year Loss on sale of plant and machinery should be written off against: Depreciation fund account IIQuestion 3: Assume that we wish to determine the expected value and standard deviation of returns of Assets A. The expected returns of assets A and probabilty for each of the next 5 years are given in columns 1 and 2 respectively in the table. Find the expected value and standard deviation of returns for Asset A Year Asset A Prob. 2019 18,00 16,00 13,00 9,00 11,00 0,25 0,20 0,15 0,20 0,20 2020 2021 2022 2023
- Cash Flow Asset End of year Amount Appropriate Required Return D 1 through 5 $1,500 12% 6 $8,500 By using cell references to the given datea and the function PV, Calculate the value of asset D.Cash Flow Asset End of Year Amount Appropriate Required Return B 1 through Infinity $300 15% using cell References to the given data, calculate the value of asset BQuestion 37 The process of transferring the cost of an asset to an expense account over time is called A) write-off B) write-down C) approciation D) depreciation E) all of the above F) none of the above Question 41 The method of determining depreciation that yields successive reductions in the periodic depreciation charge over the estimated life of the asset is the A) units-of-production method B) double-declining-balance mathod C) straight-line method D) time-valuation method
- Note: Double Declining Balance = 200% Declining Balance A. How much is the depreciation for year 3? Select one: o a. P158,203.13 o b. P150,000 o c. P210,937.50 o d. P187,500 В. How much is the total depreciation as of year three using DDB method? C. What is the equipment's book value at the end of year three?QUESTION 20 1. Which property level performance measure answers the question, "For every dollar invested in the property, how many dollars will the property return to all investors at the end of the hold period?" a. Levered equity multiple b. Cash-on-cash return c. Unlevered equity multiple d. Levered IRRQuestion 36: Match each depreciation function with its best description. SLN SYD DDB Results in the same depreciation expense each period Bases depreciation on the number of years in the asset's useful life Accelerated depreciation method that doesn't consider salvage value in the initial calculations