Question

In a straight-line depreciation schedule, the depreciation expense is the same each year. Group of answer...

In a straight-line depreciation schedule, the depreciation expense is the same each year.


Group of answer choices

True


False

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans: True

Explanation :

Straight-line depreciation method is the simplest method for calculation of depreciation. In this method, the Depreciation expense is the same every year over the useful life of the asset.

Formula to calculate the Straight Line Depreciation Expense:

Depreciation Expense = (Cost – Salvage value) / Useful life

The book value of the asset wwill get reduced by the same amount of expense every year over the useful life of the asset.  

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Forecasted depreciation expense, commonly estimated as: [(Current year depreciation expense / Prior year PPE, net) x...
Forecasted depreciation expense, commonly estimated as: [(Current year depreciation expense / Prior year PPE, net) x Current year PPE, net], is added back to net income in the cash flow from operating activities section of the Statement of Cash Flows. Group of answer choices True False
From the following facts, complete a depreciation schedule by using the straight-line method: (Input all amounts...
From the following facts, complete a depreciation schedule by using the straight-line method: (Input all amounts as positive values.) Cost of Honda Accord Hybrid $ 39,600 Residual value $ 5,800 Estimated life 8 years End of year Cost of Honda Accord Depreciation expense for the year Accumulated depreciation at end of year Book value at end of year 1 $ $ $ $ 2 $ $ $ $ 3 $ $ $ $ 4 $ $ $ $ 5 $...
Compute the depreciation schedule using straight line method for a copy machine that costs $51,186 and...
Compute the depreciation schedule using straight line method for a copy machine that costs $51,186 and has SV of $1,783 at the end of a 12-year depreciable life.
The firm currently uses straight line depreciation so that depreciation expense in 2017 will be the...
The firm currently uses straight line depreciation so that depreciation expense in 2017 will be the same as in 2018. Depreciation expense in 2017 was $5,000. Sales are expected to grow by 30% in 2018. All net income is paid out in dividends and no new stock issues are planned. Notes payable at the end of 2017 will be paid off in 2018. Calculate projected total assets and additional funds needed for 2018. End of year 2017             Cash                                           ...
Activity: Straight-line Depreciation Equipment acquired at the beginning of the year at a cost of $125,000...
Activity: Straight-line Depreciation Equipment acquired at the beginning of the year at a cost of $125,000 has an estimate residual value of $5,000 and an estimated useful life of 10 years. Determine the: •Depreciable cost •Annual straight-line depreciation •Document the depreciation expense for the 10 years Formula Dollar Values Answer Year Depreciation Expense 1 2 3 4 5 6 7 8 9 10 Total Activity: Units-of-Output Equipment acquired at the beginning of the year at a cost of $24,000 has...
If a firm uses straight line depreciation instead of accelerated depreciation, the effect on the following...
If a firm uses straight line depreciation instead of accelerated depreciation, the effect on the following ratios will be: (CFA Adapted): PP&E (Fixed Asset) Turnover = Sales divided by Fixed Assets Liabilities to Equity = Liabilities divided by Equity Group of answer choices a.PP&E Turnover will be higher and Liabilities to Equity will be lower b.PP&E Turnover will be lower and Liabilities to Equity will be lower c.PP&E Turnover will be lower and Liabilities will be higher d.PP&E Turnover will...
In part II on schedule C what goes on LIne 13 Depreciation and section 179 expense...
In part II on schedule C what goes on LIne 13 Depreciation and section 179 expense deduction?
Depreciation Methods Wendy's boss wants to use straight-line depreciation for the new expansion project because he...
Depreciation Methods Wendy's boss wants to use straight-line depreciation for the new expansion project because he said it will give higher net income in earlier years and give him a larger bonus. The project will last 4 years and requires $700,000 of equipment. The company could use either straight-line or the 3-year MACRS accelerated method. Under straight-line depreciation, the cost of the equipment would be depreciated evenly over its 4-year life (ignore the half-year convention for the straight-line method). The...
Problem 11-05 Depreciation Methods Wendy's boss wants to use straight-line depreciation for the new expansion project...
Problem 11-05 Depreciation Methods Wendy's boss wants to use straight-line depreciation for the new expansion project because he said it will give higher net income in earlier years and give him a larger bonus. The project will last 4 years and requires $900,000 of equipment. The company could use either straight-line or the 3-year MACRS accelerated method. Under straight-line depreciation, the cost of the equipment would be depreciated evenly over its 4-year life. (Ignore the half-year convention for the straight-line...
A company using straight-line depreciation purchases an asset for $500 and is depreciating this asset to...
A company using straight-line depreciation purchases an asset for $500 and is depreciating this asset to zero over its five year tax life. The company’s tax rate is 35%. If the company ends the project after four years and sells this equipment for $150, what is the after-tax cash flow from the sale of this asset? Group of answer choices $97.50 $167.50 $150 $132.50
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT