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
Option C
Decrease in cost $132,672
Explanation:
T<em>o determine the increase or decrease in costs associated with making, we will compare the relevant costs of the two options as follows</em>
<em> $</em>
Variable cost of making 10
Variable cost buying <u>14</u>
Savings in cost per from making 4
Total cost savings (decrease) 4 × 33,168 = $132,672
Decrease in cost as result of making =$132,672
Answer:
1. Increase in real income percentage = 1.5%
2. Rate of inflation = 1.7%
Explanation:
For computing the percentage of how much real income would increase, we have to apply the formulas which are shown below:
The increase in real income percentage would be equal to
= increase in nominal income percentage - increase in price level percentage
= 5.3% - 3.8%
= 1.5%
And, the rate of inflation equals to
Nominal income - the rate of inflation = Real income
2.8% - rate of inflation = 1.1%
So, the rate of inflation = 1.7%
Earl has $310 dollars in his checking account
