On january 1, 2016, knapp corporation acquired machinery at a cost of $1,250,000. knapp adopted the double-declining balance met
hod of depreciation for this machinery and had been recording depreciation over an estimated useful life of ten years, with no residual value. at the beginning of 2019, a decision was made to change to the straight-line method of depreciation for the machinery. the depreciation expense for 2019 would be
Cost on January 1 2016 = $1,250,000 Life = 10 years
Therefore, Double-declining depreciation rate = 2*(1,250,000/10)/1,250,000 = 2*0.1 = 2*10% = 20% Book value at end of 2016 = 1,250,000 - (1,250,000*20/100) = $1,000,000 Book value at end of 2017 = 1,000,000 - (1,000,000*20/100) = $800,000 Book value at end of 2018 = 800,000 - (800,000*20/100) = $640,000
Changing to straight line depreciation: Life remaining = 7 years Book value = $640,000
Depreciation expense per year = 640,000/7 = $91,428.57
Therefore, depreciation expense for 2019 = $91,428.57
The two types of values that exist are terminal values and instrumental values. Terminal values are the ones people consider of the greatest importance and desire the most. These consist of goals sought after by individuals during their whole life, such as happiness, recognition, professional success, and more. On the other hand, instrumental values relate to beliefs about what are right means to fulfilling the terminal values, such as honesty, sincerity, ethics, etc. These values have more relation to the characteristics of their personality and character.
Current assets are considered short-term assets because they generally are convertible to cash within a firm's fiscal year, and are the resources that a company needs to run its day-to-day operations and pay its current expenses. ...