The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can make it difficult for a financial analyst to compare periodic performance from firm to firm. Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double-declining- balance depreciation method. Company B uses the straight-line method. You have the following information taken from the 12/31/2024 year-end financial statements for Company B: Income Statement Book Depreciation expense $ 5,000 Balance Sheet Assets: Print Plant and equipment, at cost Less: Accumulated depreciation Net $ 100,000 (20,000) Ferences $ 80,000 You also determine that all of the assets constituting the plant and equipment of Company B were acquired at the same time, and that all of the $100,000 represents depreciable assets. Also, all of the depreciable assets have the same useful life and residual values are zero. Required: 1. In order to compare performance with Company A, estimate what Bs depreciation expense would have been for 2024 if the double-declining-balance depreciation method had been used by Company B since acquisition of the depreciable assets. 2. If Company B decided to switch depreciation methods in 2024 from the straight line to the double-declining-balance method, prepare the 2024 journal entry to record depreciation for the year, assuming no journal entry for depreciation in 2024 has yet been recorded. aw Complete this question by entering your answers in the tabs below. Required 1 Required 2 In order to compare performance with Company A, estimate what B's depreciation expense would have been for 2024 if the double-declining-balance depreciation method had been used by Company B since acquisition of the depreciable assets. Depreciation expense for 2024 Required 2 >

Industry standards for financial statement onalysis: Multiple Choice Are used to compare a company's performance to industry performance. Are based on rules of thumb. Are set by the government. Compare a company's income with its prior year's income. Are based on a single competitor's financial performance.

What is Market Value? A. Any cost that has not yet been charged to the expense B. The amount of money a business must currently spend to replace an essential asset C. Maintaining an account tied to a certain asset D. The value of a company according to the stock market

at the bottom. Had there been a loss for the In reviewing the income statement of a profitable company, one can see that it begins with at the top and ends with year, the final result would have been a What exactly does the word balance mean in the title of the balance sheet? Why do we balance the two halves? (Select all the answers that apply.) A. The balance sheet balances the firm's assets against its financing, which can be either debt or equity. B. The total value of all of the firm's assets should equal the sum of its short- and long-term debt plus stockholder's equity. C. In order for the balance sheet to balance, stockholder's equity must exclude preferred stock, common stock at par value, paid in capital in excess of par on common stock and retained earnings from previous profitable years in which some of the earnings were held back and not paid out as dividends. D. When the balance sheet does not balance, the difference must be reported as an "off-balance sheet" account for…