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Tableau DA 8 - 3 ( Static ) : Mini - Case, Analyzing straight - line, units - of - production, and double - declining
Tableau DA Static: MiniCase, Analyzing straightline, unitsofproduction, and doubledecliningbalance LO P The company founder hires us as consultants and asks that we oversee the accounting for new equipment purchased on January The founder wants to know the implications of different depreciation methods and estimates for the companys financial statements. Those statements will be used to attract financing from new investors and creditors. At the end of the equipments first year in operation, we are given the following Tableau Dashboard. a Determine the equipments firstyear depreciation under the straightline method. b Determine the equipments firstyear depreciation under the unitsofproduction method. Note: Actual units produced for Year were equal to the units estimated to be produced for Year c Determine the equipments firstyear depreciation under the doubledecliningbalance method. Which method in part results in the highest net income in the first year? If the company anticipates that its use of assets will vary greatly from one year to the next based on usage, which method would we recommend the company use? The founder is concerned that a depreciation method might result in more total depreciation expense over the useful life of an asset than another method. Which method would result in the highest amount of depreciation over an assets useful life?
Tableau DA Static: MiniCase, Analyzing straightline, unitsofproduction, and doubledecliningbalance LO P
The company founder hires us as consultants and asks that we oversee the accounting for new equipment purchased on January The founder wants to know the implications of different depreciation methods and estimates for the companys financial statements. Those statements will be used to attract financing from new investors and creditors. At the end of the equipments first year in operation, we are given the following Tableau Dashboard.
a Determine the equipments firstyear depreciation under the straightline method.
b Determine the equipments firstyear depreciation under the unitsofproduction method. Note: Actual units produced for Year were equal to the units estimated to be produced for Year
c Determine the equipments firstyear depreciation under the doubledecliningbalance method.
Which method in part results in the highest net income in the first year?
If the company anticipates that its use of assets will vary greatly from one year to the next based on usage, which method would we recommend the company use?
The founder is concerned that a depreciation method might result in more total depreciation expense over the useful life of an asset than another method. Which method would result in the highest amount of depreciation over an assets useful life?
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