Answer:
the depreciation expense for the year 2021 and the book value for the year 2021 is $21,600 and $32,400 respectively
Explanation:
The computation of the depreciation expense for the year 2021 and the book value for the year 2021 under double-declining method is given below:
The depreciation expense is
= $54,000 × 1 ÷ 5 × 2
= $21,600
Now the book value is
= $54,000 - $21,600
= $32,400
hence, the depreciation expense for the year 2021 and the book value for the year 2021 is $21,600 and $32,400 respectively
Answer:
It is a relatively easy method to apply.
Explanation:
When accounting for a subsidiary, equity method is followed, whenever the shareholding percentage is equal or more than 20%.
But here, the parent company uses, initial value method for internal reporting.
Under initial value method the value of investment in subsidiary is recorded at cost, and then adjusted at year end at fair value, this clearly shows the gain or loss at each year end from such investment as per market norms.
There is no statutory requirement to follow such initial value method for internal reporting.
The correct reason therefore, is:
It is a relatively easy method to apply.
Answer:
24 years
Explanation:
In a situation where a country GDP which is fully known as GROSS DOMESTIC PRODUCT was been expected to increase or grow at a rate of 3% per year or per annual which means that it will actually takes up to 24 years for a country economy living standard to double .
Therefore the numbers of years it would take for a country living standards to double will be 23 years.
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