Contrast the straight-line method and the units-of-activity method as to (a) Useful life, and (b) The pattern
Question:
(a) Useful life, and
(b) The pattern of periodic depreciation over useful life.
Step by Step Answer:
a Useful life is expressed in years under the straightl...View the full answer
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Accounting questions
-
Pooh Inc. constructed a machine at a total cost of $70 million. Construction was completed at the end of 2010 and the machine was placed in service at the beginning of 2011. The machine was being...
-
A box with an unknown mass is hanging from two ropes as shown to the right. If the tension in each rope is 73.5 Newtons, calculate the mass of the box. Tension in each rope = 73.5N
-
Two tiny particles having charges of 5.76 C and -7 C are placed along the y-axis. The 5.76 C particle is at y = 0 cm, and the other particle is at y = 48.74 cm. Where must a third charged particle be...
-
The Public Company Accounting Oversight Board (PCAOB) was created as part of a series of accounting reforms in the Sarbanes-Oxley Act of 2002. The PCAOB is a Government-created entity with expansive...
-
Marcus is 25 years old. He has a new job and intends to save $10,000 today and in each of the next 34 years (35 deposits altogether). He has decided on an investment policy in which he invests 30% of...
-
Tipping points in daily deal transactions? Online daily deal sites (e.g., Groupon) offer customers a voucher to purchase a product at discount prices. However, the number of voucher purchases must...
-
Should the SEC selectively prosecute companies, organizations, or individuals to encourage compliance with legal or professional standards? Defend your answer
-
Sheridan Industries presents you with the following information. Complete the table for the year ended December 3 1 , 2 0 2 7 . The company depreciates all assets using the half - year convention. (...
-
The shareholders equity section of Cadmium Corporation as at December 31, 2020, follows: 8% cumulative preferred shares, 100,000 shares authorized, 80,000 shares outstanding...
-
Robert is studying for the next accounting examination. He asks your help on two questions: (a) What is salvage value ? (b) Is salvage value used in determining periodic depreciation under each...
-
Contrast the effects of the three depreciation methods on annual depreciation expense.
-
A company taking a strategic and customer-centered point of view can best address sustainability, a concern for environmental and social as well as economic performance, through a. Annual financial...
-
Aircraft \(B\) has a constant speed of \(150 \mathrm{~m} / \mathrm{s}\) as it passes the bottom of a circular loop of 400-m radius. Aircraft \(A\) flying horizontally in the plane of the loop passes...
-
A small inspection car with a mass of \(200 \mathrm{~kg}\) runs along the fixed overhead cable and is controlled by the attached cable at \(A\). Determine the acceleration of the car when the control...
-
An aircraft \(P\) takes off at \(A\) with a velocity \(v_{0}\) of \(250 \mathrm{~km} / \mathrm{h}\) and climbs in the vertical \(y^{\prime}-z^{\prime}\) plane at the constant \(15^{\circ}\) angle...
-
If each resistor in Figure P31.75 has resistance \(R=5.0 \Omega\), what is the equivalent resistance of the combination? Data from Figure P31.75 wwwwww wwwww www www wwwww
-
Identify the proper point to recognize expense for each of the following transactions. a. Kat Inc. purchases on credit six custom sofas for \(\$ 800\) each in June. Two of the sofas are sold for \(\$...
-
Would failure to eliminate unrealized profit in inventories at December 31, 2006, have any effect on consolidated net income in 2007? 2008? AppendixLO1
-
The percentage of completion and completed contract methods are described in the FASB ASC. Search the codification to find the paragraphs covering these topics, cite them, and copy the results.
-
How do system clocks and bus clocks differ?
-
Depreciation information for Tomorry Company is given in BE10-3. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and...
-
Koman Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 150,000 miles. Taxi no. 10 cost $33,500 and is expected to have a...
-
On January 1, 2012, the Dancing Gorillas Company ledger shows Equipment $29,000 and Accumulated DepreciationEquipment $9,000. The depreciation resulted from using the straight-line method with a...
-
business law A partner may actively compete with the partnership True False
-
A company provided the following data: Selling price per unit $80 Variable cost per unit $45 Total fixed costs $490,000 How many units must be sold to earn a profit of $122,500?
-
Suppose a 10-year, 10%, semiannual coupon bond with a par value of $1,000 is currently selling for $1,365.20, producing a nominal yield to maturity of 7.5%. However, it can be called after 4 years...
Study smarter with the SolutionInn App