1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Wewaii [24]
3 years ago
14

A fixed asset with a five-year estimated useful life and no scrap value is sold at the end of the second year of its useful life

. How would using the straight-line method of depreciation instead of the double-declining balance method of depreciation affect a gain or loss on the sale of the plant asset?
A) A gain would be greater or a loss would be less using straight-line depreciation.
B) A gain would be less or a loss would be greater using straight-line depreciation.
C) A gain would be less or a loss would be less using straight-line depreciation.
D) Neither the gain or loss would be different using straight-line depreciation instead of double-declining-balance method.
Business
1 answer:
JulsSmile [24]3 years ago
8 0

Answer:

B) A gain would be less or a loss would be greater using straight-line depreciation.

Explanation:

In straight line method of depreciation there is a fixed amount of depreciation,  and in double declining method the rate is double of straight line method,

Let us take an example,

Cost of asset = $500,000

Selling price at end of 2nd year = $300,000

Straight line depreciation = $100,000 for each year i.e. $500,000/5

Double declining method rate = ($100,000/$500,000) \times 100 \times 2 = 40%

Therefore value at end of second year

Straight line = $500,000 - ($100,000 \times 2 ) = $300,000

Double Declining method = ($500,000 -40%) - 40% = $180,000

In case of sale at $300,000

Profit shall be

Straight line = $300,000 - $300,000 = 0

Double Declining = $300,000 - $180,000 = $120,000

Now, there will be more profit in double declining that is gain is less in straight line and losses would be greater in straight line thus statement B is correct.

You might be interested in
Which student best fills the role of group notetaker? Yuna, who is positive and considers other viewpoints Hiroto, who is focuse
Juliette [100K]
Sora is the best group note taker; she meets are the criteria.
3 0
3 years ago
The general description of the job of HR manager includes Multiple Choice providing high-level administrative support by conduct
marin [14]

Answer:

maintaining functions such as employee compensation, recruitment, and personnel policies

Explanation:

5 0
3 years ago
Richard Beck has a life insurance policy which he has modified to include an accidental death benefit payable to his son and dau
Ksju [112]

Answer:

The correct answer is number (1): double indemnity provision.

Explanation:

A double indemnity provision is added in life insurance to double the amount the beneficiaries of the policyholder receive in front of his or her death in an accident. Double indemnity provision does not cover events in which the policyholder dies because of natural reasons or when those individuals had hazardous jobs. Premiums are higher with a double indemnity provision.

7 0
3 years ago
Yuto owns a souvenir shop in Tokyo. He wants to reach English speaking tourists in his city during certain hours of the day. Whi
vesna_86 [32]

Answer:

Location targeting

Ad scheduling

Language targeting

Explanation:

Yuto try three new and improve methods, Location targeting , Ad scheduling ,Language targeting to reach English speaking tourists.

By using these techniques, Yuto focus on specific target and specific location for target his tourist .

7 0
3 years ago
Sam, the owner of a toy store, dies unexpectedly at the age of 56. His lifelong business associate, Paul, is appointed the admin
Nostrana [21]

Answer:

b. An oral statement such as this is not enforceable because it is outside the Statute of Frauds.

Explanation:

The statute of frauds (SOF) is a legal concept that requires certain types of contracts to be executed in writing. Among others, these typically include those for the sale of land, of any goods over $500 in value, and contracts of a year or more in length.

The contracts that must adhere to the statutes of fraud are Collateral contracts in which a person promises to answer for the debt or duty of another, or guaranty contracts are required to be written. Prenuptial agreements and promises made in consideration of marriage must adhere to the statute of frauds.

3 0
3 years ago
Other questions:
  • For each example of a reward, identify whether it is an extrinsic or intrinsic reward.1)The employees were happy with the new la
    6·1 answer
  • Junie is excited to go running on the city's newest running and bike trail. the brand new 3-mile trail runs right through the ci
    5·1 answer
  • Outline the differences between chain stores and departmental stores.​
    5·2 answers
  • What are the three duties of a central bank?
    11·1 answer
  • Rachelle owns a warehouse that she purchased in September, 19 years ago. The purchase price was $400,000. During May of the curr
    5·1 answer
  • The common stock of the
    14·1 answer
  • Your firm is considering the purchase of a new office phone system. You can either pay $ 32 comma 500 ​now, or $ 900 per month f
    10·1 answer
  • Does anyone know anything on accounting????
    13·1 answer
  • Given the following information about the closed economy of Brittania, what is the level of investment spending and private savi
    13·1 answer
  • Is this picture showing pathos, ethos, or logos? explain why.
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!