The double-declining-balance and straight-line depreciation methods Produce the same total depreciation over an asset's useful life.
- Two of the four depreciation methods permitted by US generally accepted accounting standards are the straight-line and double-declining-balance depreciation procedures (GAAP).
- The sum of the years' digit and units of production are the other two techniques. By deducting the salvage value from the asset's purchase price and either dividing the depreciable amount by the number of years or applying a preset rate to the depreciable amount, the straight-line method is derived.
- The depreciation rate is calculated using the double-declining-balance technique by dividing 100 percent by the asset's useful life in years, then multiplying the result by two.
- The diminishing amount is then used to calculate depreciation expenditure until only the salvage value is left. They therefore result in the same depreciation over the course of the asset's useful life.
<h3>Is double declining balance a method of straight-line depreciation?</h3>
- The straight-line depreciation technique, another and arguably even more frequent type of depreciation, depreciates an asset's value at a rate that is half that of the DDB depreciation method.
<h3>What is double declining balance depreciation method?</h3>
- A type of accelerated depreciation method called the double-declining balance method doubles the rate at which an asset's value depreciates compared to the straight-line approach.
- Accelerated depreciation refers to the process of depreciation that occurs twice as quickly as the straight-line method.
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Answer:
One share of this stock worth to you today is $18.08
Explanation:
According to the question, we have the following data:
D1 = $3.30
g = 0.0375
Ke = 0.22
one share of this stock worth to you today = P0
Hence to calculate the P0 we have to use the following formula:
Ke = D1/P0 + g
0.22 = 3.3/P0 + 0.0375
P0 = $18.08
One share of this stock worth to you today is $18.08
Answer:
Estimated balance of Doubtful Account after adjusting entry = $4,200
Explanation:
Given:
The credit balance of Doubtful Account = $500
Computation of estimated balance of Doubtful Account after adjusting entry:
Estimated balance of Doubtful Account after adjusting entry = 7% of $60,000
Estimated balance of Doubtful Account after adjusting entry = $4,200
After adjusting entry , Total amount credited in Allowance for Doubtful Accounts is $4,200
Answer:
The correct answer is: Cost of goods sold=$844000
Explanation:
The cost of goods sold refers to the direct costs attributable to the production of the goods sold in a company. This amount includes the cost of the materials used in creating the goods along with the direct labor costs used to produce the goods. It excludes indirect expenses, such as distribution costs and sales force costs.
COGS=Beginning Inventory+Production during period−Ending Inventory
Cost of goods manufactured= production during the period
COGS= 332000+866000-354000=$844000
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