Under What Conditions Would a Company Most Likely Adopt the Double-Declining-Balance

question 107

Multiple Choice

Under what conditions would a company most likely adopt the double-declining-balance method for financial reporting?

• A)They have high technology, robotic equipment in their plant that becomes obsolete quickly and declines in utility to the company more rapidly in the early years of the assets' lives.
• B)They want to maximize their net income during the earlier years of the assets life.
• C)They want to maximize the asset's book value in the earlier years of the asset's life.
• D)They want to maximize the total depreciation expense over the life of the asset.

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Definitions:

Status Option

A selectable setting or command within a software's status bar or settings menu that alters the display or behavior of application features.

Originator

Refers to the person who creates or initiates something, such as an idea, project, or document.

New Meeting Time

The action or process of scheduling an alternate time for a previously planned meeting.

Status Option

A feature in software that displays current information about the program or document state.