Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
6th Edition
ISBN: 9780134486840
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem 3QC
Which method almost always produces the most
a. Units-of-production
b. Straight-Line
c. Double-declining-balance
d. All produce the same depreciation in the first year.
Expert Solution & Answer
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Students have asked these similar questions
Which of the following is true?
a.If using the units-of-output method, it is possible to depreciate more than the depreciable cost.
b.If using the double-declining-balance method, the total amount of depreciation expense during the life of the asset will be the highest.
c.If using the straight-line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance.
d.Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.
26.
haracteristics of Depreciation Methods
In each dropdown below is a list of common depreciation methods and characteristics related to depreciation.
Required:
Select one or more of the depreciation methods with each characteristic.
1. Results in depreciation expense that decreases over the life of the asset
2. Results in depreciation expense that increases over the life of the asset
3. Allocates the same amount of cost to each period of a depreciable asset's life
4. Calculated by multiplying a constant depreciation rate by depreciable cost
5. Calculated by applying a constant depreciation rate to the asset's book value at the beginning of the period
6. Results in lowest income tax expense in early years of the asset's life
7. Consistent with the matching process
Options:
Straight-line depreciation method
Declining balance depreciation method
Units-of-production depreciation method when actual units produced increases over the life of the asset
All of these…
Which of the following methods applies a declining depreciation rate each period to an asset's constant value?
a.Double-declining-balance methodb.Straight-line methodc.Sum-of-the-years'-digits methodd.Units-of-production method
Chapter 9 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Ch. 9 - Prob. 1QCCh. 9 - Prob. 2QCCh. 9 - Which method almost always produces the most...Ch. 9 - A Celty Airline jet costs 28,000,000 and is...Ch. 9 - A copy machine costs 45,000 when new and has...Ch. 9 - Suppose Print and Photo Center in the preceding...Ch. 9 - Prob. 7QCCh. 9 - Prob. 8QCCh. 9 - Liberty Corporation reported beginning and ending...Ch. 9 - A truck costs 50,000 when new and has accumulated...
Ch. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - What is the difference between a capital...Ch. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - How does a business decide which depreciation...Ch. 9 - Prob. 10RQCh. 9 - Prob. 11RQCh. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - How is gain o r loss determined when disposing of...Ch. 9 - Prob. 15RQCh. 9 - Prob. 16RQCh. 9 - Prob. 17RQCh. 9 - Prob. 18RQCh. 9 - Prob. 19RQCh. 9 - What does it mean if an exchange of plant assets...Ch. 9 - Prob. 9.1SECh. 9 - Prob. 9.2SECh. 9 - Prob. 9.3SECh. 9 - Prob. 9.4SECh. 9 - Prob. 9.5SECh. 9 - Prob. 9.6SECh. 9 - Prob. 9.7SECh. 9 - S9-8 Discarding an asset
On October 31, 2018,...Ch. 9 - Prob. 9.9SECh. 9 - Prob. 9.10SECh. 9 - Prob. 9.11SECh. 9 - Prob. 9.12SECh. 9 - Prob. 9.13SECh. 9 - Prob. 9.14SECh. 9 - S9A-15 Exchanging plant assets
Micron Precision,...Ch. 9 - S9A-16 Exchanging plant assets
White Corporation...Ch. 9 - Prob. 9.17ECh. 9 - E9-18 Making a lump-sum purchase of...Ch. 9 - Prob. 9.19ECh. 9 - E9-20 Computing depreciation—three methods
Crispy...Ch. 9 - E9-21 Changing an asset’s useful life and residual...Ch. 9 - E9-22 Recording partial-year depreciation and sale...Ch. 9 - Prob. 9.23ECh. 9 - Prob. 9.24ECh. 9 - Prob. 9.25ECh. 9 - Prob. 9.26ECh. 9 - Prob. 9.27ECh. 9 - Prob. 9.28ECh. 9 - Prob. 9.29ECh. 9 - Prob. 9.30APCh. 9 - P9-31A Determining asset cost, preparing...Ch. 9 - Prob. 9.32APCh. 9 - Prob. 9.33APCh. 9 - Prob. 9.34APCh. 9 - Prob. 9.35APCh. 9 - Prob. 9.36BPCh. 9 - Prob. 9.37BPCh. 9 - Prob. 9.38BPCh. 9 - Prob. 9.39BPCh. 9 - Prob. 9.40BPCh. 9 - Prob. 9.41BPCh. 9 - Prob. 43CPCh. 9 - Prob. 9.1TICh. 9 - Western Bank Trust purchased land and a building...Ch. 9 - Prob. 9.1FCCh. 9 - Prob. 9.1FSCCh. 9 - In 150 words or fewer, explain the different...
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- Which method of deprecation results in a lower amount for depreciation each year? ⒸA. Units of production B. Fixed instalment OC. Diminishing balance OD. Straight-line Previous pagearrow_forwardExplain the justification for following each method of depreciation: - staight line method - double declining balance - sum of the years digits - units of productionarrow_forwardThe depreciation method in which the depreciable cost of an asset is apportioned equally over its estimated life in terms of months or years is called the a.units-of-production method. b.straight-line method. c.declining-balance method. d.sum-of-the-years'-digits method.arrow_forward
- The depreciation method which uses a depreciation rate that is a multiple of the straight-line rate is called: Multiple Choice Units-of-production depreciation. Modified accelerated cost recovery system (MACRS) depreciation. Declining-balance depreciation. Book value depreciation. Amortization.arrow_forwardThe method of depreciation which is also known as Accelerated depreciation method is a. Diminishing balance method b. Units of production method c. Double declining depreciation method d. Straight line methodarrow_forwardThe straight-line depreciation method and the double-declining-balance depreciation method: Group of answer choices Produce the same depreciation expense each year. Produce the same total depreciation over an asset's useful life. Produce the same book value each year. Are the only acceptable methods for calculating depreciation expense.arrow_forward
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- Which depreciation method would result in the same depreciation expense amount regardless of the partial period cor Select one: a. Sum-of-the-years'-digits b. Declining-balance c. Units-of-production d. Straight-linearrow_forwardA steel manufacturer uses the production variable method for depreciating assets. Which combination best describes the depreciation method used? Straight-line and activity Double-declining balance and activity Double-declining balance and sum-of-years'-digits Straight-line and sum-of-years'-digitsarrow_forwardWhen we can recognize a larger portion of depreciation in the early period, we will have a higher NPV than when we use the straight-line depreciation method. a. True b. Falsearrow_forward
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