Answer:
the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used.
Explanation:
Let me use an example to illustrate this.
An asset has a useful life of 4 years. It costs $1000. It has a salvage value of 0
If the straight line depreciation method is used , the depreciation expense every year = $1000/ 4 = $250
The net book value halfway through its useful life = $1000 - ($250 x 2) = $500
If double declining method is used, the depreciation expense in the first year would be = 2/4 x $1000 = $500
The net book value at the beginning of year 2 = $1000 - $500 = $500
Depreciation expense in year 2 = 2/4 x $500 = $250
The net book value at the beginning of year 3 = $500 - $250 = $250
We can see that the net book value halfway through the useful is lower when double declining depreciation method is used
Answer:
Substitutes
Explanation: A Substitute is a term used to describe a replacement for another,it is used to describe two or more items or materials or things that perform similar Activities and roles.
BOTH THE HUMAN WORKERS AND ROBOTS CAN BOTH BE ENGAGED TO ATTACH THE PARTS,WHICH MEANS IN THE ABSENCE OF ONE THE OTHER CAN CARRY OUT THE RESPONSIBILITY OF THAT ONE.
Answer:
FV= $33,094.2
Explanation:
Giving the following information:
Present value (PV)= 50*100= $5,000
Number of periods (n)= 2020 - 1960= 60 years
Apreciation rate (g)= 3.2% = 0.032
<u>To calculate the value of the collection in 2020, we need to use the following formula:</u>
Future value= PV*(1 + g)^n
FV= 5,000*(1.032^60)
FV= $33,094.2
Answer:
The answer is B.
Explanation:
Contingent liability is a liability that may occur in the future subject to the outcome of a specific event. The future outcome determines contingent liability. Examples of contingent liability are product warranties, pending court case etc.
So contingent liability should be recognized when the future events are probable to occur and the amount can be reasonably estimated
Answer:
Amount paid in host country will be = Income * Tax rate in host country = $100,000*25% = $25,000
Amount paid in US will be Income * Tax rate in US - Tax paid in host country (Since the tax rate in host country is lower than USA) = $100,000*35% - $25,000 = $35,000 - $25,000 = $10,000