Solved: Multiple Choice Question 99 The Declining-balance ~ Breaking News

Declining Balance (DB) Depreciation • For straight line depreciation with N years, the rate of decrease each year is 1/N • Declining balance depreciation uses either 150% or 200% of the straight-line rate. Since 200% is twice the straight-line rate, it is called double declining balance (DDB) • The DDB depreciation amount, Dn, in any year is:The declining-balance method of depreciation produces a(n) asked Dec 22, 2020 in Business by hmn101. a. decreasing depreciation expense each period. b. increasing depreciation expense each period. c. declining percentage rate each period. d. constant amount of depreciation expense each period.Declining balance method of depreciation is an accelerated depreciation method in which the depreciation expense declines with age of the fixed asset. Depreciation expense under the declining balance is calculated by applying the depreciation rate to the book value of the asset at the start of the period.Using the double-declining balance method, depreciation expense in 2006 would be: $100,000 X (1/4 X 2) = $50,000. Depending on the level of use in the first year, use of the units-of-production method could yield an even lower expense in the first year compared to straight-line.The most common types of depreciation methods include straight-line, double declining balance, units of production, and sum of years digits. There are various formulas for calculating depreciation of an asset. Depreciation expense is used in accounting to allocate the cost of a tangible asset over its useful life.

The declining-balance method of depreciation produces a(n

Depreciation expense = (total acquisition cost — salvage value) Double-Declining-Balance Method. The DDB method simply doubles the straight-line depreciation amount that is taken in the first year, and then that same percentage is applied to the un-depreciated amount in subsequent years. This method produces a very aggressive depreciation67. The declining-balance method of depreciation produces a(n) a. decreasing depreciation expense each period. b. increasing depreciation expense each period. c. declining percentage rate each period. d. constant amount of depreciation expense each period.Depreciation 12-1 Some seed cleaning equipment was purchased in 2009 for $8,500 and is depreciated by the double declining balance (DDB) method for an expected life of 12 years. What is the book value of the equipment at the end of 2014? Original salvage value was estimated to be $2,500 at the end of 12 years. Solution Book Value = P(1 - )nA) the declining-balance method ignores salvage value when calculating depreciation. B) the declining-balance method produces lower depreciation expense in the early years as opposed to the later years. C) the declining-balance method is compatible with the matching principle. D) the declining-balance method is appropriate when assets lose

Declining Balance Depreciation | Formula & Example

The declining-balance method of depreciation produces a(n) $60,000 loss on disposal A company sells a plant asset that originally cost $225,000 for $75,000 on December33. The declining-balance method of depreciation produces a(n) a. decreasing depreciation expense each period. b. increasing depreciation expense each period. c. declining percentage rate each period. d. constant amount of depreciation expense each period. 34. Which of the following methods will result in the highest depreciation in the firstAs one of several accelerated depreciation methods, double-declining balance (DDB) results in relatively large amounts of depreciation in early years of asset life and smaller amounts in later years. This method can be justified if the quality of service produced by an asset declines over time, or if repair and maintenance costs will rise over time to offset the declining depreciation amount.The double declining balance depreciation method is an accelerated depreciation method that counts as an expense more rapidly (when compared to straight-line depreciation that uses the same amount...Company A recognizes depreciation to the nearest whole month. Calculate the depreciation expenses for 2011, 2012 and 2013 using double declining balance depreciation method. Useful life = 5 years --> Straight line depreciation rate = 1/5 = 20% per year Depreciation rate for double declining balance method

33. The declining-balance method of depreciation produces a(n)

a. lowering depreciation expense every period.

b. expanding depreciation expense each and every duration.

c. declining share rate each period.

d. constant amount of depreciation expense each and every length.

34. Which of the following methods will lead to the highest depreciation in the first yr?

a. Sum-of-year's-digits.

b. Time valuation.

c. Straight-line.

d. Declining-balance.

35. A acquire or loss on disposal of a plant asset is decided by way of evaluating the

a. substitute cost of the asset with the asset's original price.