A Plant Asset Acquired on October 1, 2010, at a Cost

question 189

Essay

A plant asset acquired on October 1, 2010, at a cost of $300,000 has an estimated useful life of 10 years. The salvage value is estimated to be $30,000 at the end of the asset's useful life.
Instructions
Determine the depreciation expense for the first two years using:
(a) the straight-line method.
(b) the double-declining-balance method.

Recognize the legal consequences of fraudulent misrepresentation and how it can affect contract validity.

Understand the concept and implications of mutual mistake in contract agreements.

Identify the elements required to prove duress and its effect on contracts.

Grasp the concept of scienter and its relevance in cases of fraud.

---

Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or gender.

Unwanted Behavior

Actions or reactions that are considered undesirable by society or a particular group, often leading to social or personal consequences.

Fixed-Ratio

A schedule of reinforcement where a response is rewarded only after a specified number of responses, often used in behavioral psychology.

Variable-Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, in the context of behavioral psychology.