Multiple Choice
The declining-balance method of depreciation produces:
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8. Long Lived Assets
Depreciation: Declining Balance
Back8. Long Lived Assets
Depreciation: Declining Balance
- Multiple ChoiceThe formula for calculating declining balance depreciation is the depreciation rate per year multiplied by which of the following?28views
- Multiple ChoiceA company purchased a machine for $10,000 with an estimated useful life of 5 years and no salvage value. Using the double-declining-balance method, what is the depreciation expense for the second year?6views
- Multiple ChoiceWhich of the following best describes the double-declining balance (DDB) method of depreciation?8views
- Multiple ChoiceWhich depreciation method results in higher depreciation expense when the asset is used more?21views
- Multiple Choice
ABC Company purchased a new machine on January 1, Year 1 for $44,000. The company expects the machine to last ten years. The company thinks it could sell the scrap metal from the machine for $4,000 at the end of its useful life. If the company uses the double-declining method for depreciation, what will be the net book value of the machine on December 31, Year 2?
265views3rank - Multiple Choice
DBQ Company purchased a machine on January 1, Year 1 for $60,000. The company estimated a five year useful life and $8,000 residual value. If the company uses the double-declining-balance method for depreciation, what will be the amount of accumulated depreciation on December 31, Year 2?
252views - Multiple Choice
XYZ Company purchased a machine on January 1, 2018 for $120,000. The company estimated a four year useful life and $4,000 residual value. If the company uses the double-declining-balance method for depreciation, what will be the amount of depreciation expense for the year 2021?
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