written down value method is more appropriate than the straight-line method
Q: For depreciation purposes, what would be the first cost of the new machine(depreciation base)?
A: Depreciation is the charge or expense to be accounted in the books against an asset of the…
Q: The method of depreciation which is also known as Accelerated depreciation method is a. Diminishing…
A: Depreciation expense is the reduction in the value of assets due to the wear and tear on that asset.…
Q: Salvage value is not considered directly in the determination of the deprecation amount with the…
A: Salvage value is also called the residual value. Salvage value is the estimated selling price of the…
Q: Explain why activity based method is more appropriate to calculate depreciation than straight line…
A: Depreciation is charged to allocate the cost of the asset over the useful life of the asset. It…
Q: What is the systematic periodic transfer of the cost of a fixed asset to an expense account during…
A: It is a measure of the wearing out, consumption or other loss of value of depreciable asset arising…
Q: Multiple Choice Depletion expense Excludes estimated restoration cost from the depletion base O Is…
A: A depletion expense means the levy against the profit which is used in natural resources. It is same…
Q: It is the gradual diminution of the useful value of tangible property resulting from wear and tear…
A: (i) Depreciation: Depreciation is the gradual decrease in the value of the asset due to wear and…
Q: Explain the differences between depreciation expense and impairment loss of property, plant and…
A: The difference between Depreciation and impairment is as follows: Depreciation Impairment It is…
Q: What is advantages and disadvantages of centralization and decentralization? -Explain Effects of…
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Q: The factor that is not relevant in computing depreciation is
A: Depreciation is an accounting method used to allocate the cost of a tangible or physical asset over…
Q: How should intangible assets and property, plant, and equipment (PP&E) be treated when their service…
A: The Answer
Q: The cost of an item, an estimate of its salvage value, and an expected usable life are all factors…
A: The Answer
Q: Is there any evidence to suggest that the straight-line depreciation approach is more often used
A: The question tells about the straight-line depreciation approach is more often used
Q: Detailed Explanation needed. Advantages and Disadvantages of methods of depreciation ( Straight…
A: The efficiency of the assets will reduce over the period. To record this reduction in the…
Q: Should the engineers be able to assess the reality of depreciating fixed assets?
A: A company should assess the position of its fixed asset and check for its impairment if condition…
Q: The following are the causes of functional depreciation except: a. obsolescence of the machine b.…
A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…
Q: can you give me an example of straight line depreciation and explain it
A: The straight-line basis is a depreciation method of estimation of depreciation expense on an asset.…
Q: To what extent do you consider the following items to be proper costs of the fixed asset? Give…
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Q: Which of the following statements relating to intangible assets is true? A All intangible assets…
A: Intangible assets: These are the long-term assets which are not physical in nature, but possess…
Q: A method that excludes residual value from the base for the depreciation calculation
A: Depreciation base: Depreciation base is the amount that is allocated over the estimated service…
Q: True or false _________ Costs incurred that are directly attributable to the acquisition of a PPE…
A: Answer
Q: Which of the following is not a typical internal control over long-lived assets? a. Periodically…
A: Long-lived assets are those assets whose life is more than a year. Means those assets are in the…
Q: are depreciation methods important in the business arena? Explain the differences among the…
A: Depreciation refers to the concept of determining the rate at which an asset is diminishing in its…
Q: On your own words, describe the methods that companies can implement to depreciate plant assets.
A: The methods to depreciate the plant assets are as follows, Straight Line Depreciation: This is also…
Q: It results not from a deterioration in the asset's ability to serve its intended purpose, but from a…
A: Depreciation is less in the value of asset. depreciation is a natural phenomenon in which the value…
Q: Verifying repair costs will be handled differently from auditing depreciation costs. What's the…
A: Answer: Repaid costs are the costs that pertains to the maintenance of the assets Depreciation costs…
Q: The certified public accountant is frequently called upon by management for advice regarding methods…
A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to…
Q: Which method of depreciation is suitable when expenditure on repairs and maintenance, increases as…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Differential analysis can aid management in making decisions on a variety of alternatives, including…
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Q: Evaluate the following statements: S1. When buildings and improvements are constructed in connection…
A: Depreciation is the charge on assets for the usage of assets during the period. Extracting natural…
Q: (d) On what basis should management select from these two methods to depreciate the machine? Justify…
A: The management should opt for reducing balance method of depreciation for the above scenario: This…
Q: Remodeling and rehabilitation: O Can usually be undertaken by the property manager without…
A: Rehabilitants and remodeling both are a different thing. Rehabilitations consists of renovating…
Q: Depreciation continues to be one of the most controversial, difficult, and important problemareas in…
A: Depreciation is the purposeful, gradual reduction in the reported value of an item over its useful…
Q: Which of the following is a false statement about depreciation? It has no impact on cash It…
A: The accelerated method is a method of charging the depreciation in which the higher amount of…
Q: The write-off of the cost of an intangible asset is called a.deterioration. b.functional…
A: Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: Under what circumstances will you consider the reducing balance method as the most appropriate…
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Q: raxton Inc. is considering the write-off of a limited-life intangible because of its lack of…
A: Limited Life Intangible Asset: Assets with the limited life are known as limited life intangible…
Q: A) What is residual value? Support your answer with an example ( word count 100)
A: Lets understand the basic. When person purchase the asset they expected that after the useful life…
Q: Which of the following items is not a consideration when recording periodic depreciation on plant…
A: In order to record the periodic depreciation on Plant Assets Cost, Salvage value and Estimated…
Q: When considering the replacement of old equipment, which of the following item is relevant?…
A: Relevant cost refers to the cost that affects the cash flows estimated for decision making.
Q: According to PAS 38, which of the following may be recognized as cost of intangible asset? a.…
A: Requirement is to find solutions to some MCQs
Q: Several expenditures are listed below. Indicate whether or not each expenditure would be included in…
A: Equipment cost includes Purchase Price ( Invoice price less deduction ) Transportation ( Freight…
Q: Depreciation is the allocation of the cost of a plant asset over its useful life in a rational and…
A: Depreciation is charged on assets for reducing their value which is a result of the use of the asset…
Q: Which one of the following items is not a consideration when recording periodic depreciation expense…
A: Depreciation is a method of reducing the value of an asset arising from use, efflux of time or…
Q: In a replacement analysis, the market value of the currently owned asset a. does not impact the cash…
A: With the passage of the time, old assets are outdated and more cost is incurred to maintain. So, it…
Q: Normally, depreciation should not be recognized on plant assets during their construction period.…
A: The depreciation expense is charged on fixed assets as reduction in value of fixed assets with the…
Q: a. Under what conditions is the use of the straightline depreciation method most appropriate?b.…
A: a. Explain the condition under which the straight-line depreciation method is the most appropriate…
The organization prefers using Written down value method for the
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- Explain why activity based method is more appropriate to calculate depreciation than straight line methodGive reasons why depreciation methods are useful?Explain the differences between cost depletion, asset depreciation, and amortization. Explain the Modified Accelerated Cost Recovery System (MACRS).
- Which of the following items shall not be capitalized into the cost of property, plant, and equipment? Cost of excess materials resulting from a purchasing error. Cost of testing whether the asset works correctly. Initial delivery and handling costs. Cost of preparing the site for installation.Which of the following risks is an inherent risk related to asset impairment? a. Determining asset impairment is based on management judgment. b. It is difficult to identify the costs associated with the discovery of natural resources. c. Management might have incentives to not record all asset disposals. d. All of the above are inherent risks related to asset impairment. 4.Under what conditions is the use of the straight-line depreciation method most appropriate?
- Should the engineers be able to assess the reality of depreciating fixed assets?Why is depreciation expense recognized? Select one: a. To provide a better estimate of the market value of the depreciated assets. b. So that the balance sheet value of plant assets will more accurately reflect the replacement cost of the assets. c. To ensure that cash will be available at the end of the assets' useful life in order to replace it. d. To match the cost of the asset against the revenue using a reasonable allocation. method. Save AnswersNextWhat is advantages and disadvantages of centralization and decentralization? -Explain Effects of Depreciation Deductions (with example).
- Distinguish between three depreciation methods:Straight-Line Method; Production Method; and Declining-BalanceMethod. Discuss which depreciation method would best reflect therisk of obsolescence from rapid technological changes.Explain the straight-line method of depreciation with an example?Is there any evidence to suggest that the straight-line depreciation approach is more often used?