Norwood, Inc purchased a crane at a cost of $80,000 . The crane has an estimated residual value of $5,000 and an estimated life of 8 years, or 12,500 hours of operation. The crane was purchased on January 1, 2015 and was used 2,700 hours in 2015 and 2,600 hours in 2016. Refer to the information for Norwood, Inc, Based on this information, what method of depreciation will produce the maximum
depreciation expense in 2016?
a. Straight-line
b. Double-declining-balance
c. Units-of-production
d. All methods produce the same expense in 2016.
c
You might also like to view...
Invoices are processed, including their mailing to customers, only subsequent to proof of valid delivery to customers
a. True b. False Indicate whether the statement is true or false
Considering a “strengths” approach to leadership as used in the strengthsfinder assessment, how are traits, talents, and strengths related to one another?
What will be an ideal response?
Jessup Company was founded in Year 1. It acquired $45,000 cash by issuing stock to investors and an additional $15,000 cash by borrowing from creditors. During Year 1 it received $25,000 cash revenues and paid $32,000 in cash expenses. The company then went out of business.Required: a) Explain the term, "business liquidation."b) What amount of cash should Jessup Company have had on hand immediately before going out of business?c) What amount of cash will Jessup's creditors receive?d) What amount of cash will Jessup's stockholders receive?
What will be an ideal response?
In a given portfolio, replacing an existing investment with a lower beta investment results in _____.?
A. ?an increase in the expected rate of rate return of the portfolio B. ?a decrease in the actual rate of return of the portfolio C. ?a decrease in the required rate of return of the portfolio D. ?an increase in the systematic risk of the portfolio E. ?the portfolio beta moving toward 1.0