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earnings, depreciation, etc.
a.(1) Straight-Line (nearest whole month)
Depreciation Accumulated Book Year Expense Depreciation Value 2005 $600 $600 $15,400 «- Correct! 2006 800 1,400 14,600 «- Correct! 2007 800 2,200 13,800 «- Correct! 2008 800 3,000 13,000 «- Correct! a.(2) 200% Declining-Balance (half-year convention) Depreciation Accumulated Book Year Expense Depreciation Value 2005 $800 $800 $15,200 «- Correct! 2006 1,520 2,320 13,680 «- Correct! 2007 1,368 3,688 12,312 «- Correct! 2008 a.(3) 150% Declining-Balance (half-year convention) Depreciation Accumulated Book Year Expense Depreciation Value 2005 $600 $600 $15,400 «- Correct! 2006 1,155 1,755 14,245 «- Correct! 2007 2008 b. Management wants to report the highest possible earnings in its financial statements, yet it also wants to minimize its taxable income reported to the IRS. Explain how both of these objectives can be met. c. Which of the depreciation methods resulted in the lowest reported book value at the end of 2008? Is book value an estimate of an asset's fair market value? Explain. The above is a homework question, correct are the responses that I have done. I have tried every way to fill in the later blanks for above, but no avail. 200 and 150% depreciation are to be done with half year convention please help me thanks |
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