Which of the Following Amortization Methods Produces the Highest Amortization

question 64

Multiple Choice

Which of the following amortization methods produces the highest amortization expense in the first year of life of an asset that cost $10,000, has an estimated useful life of four years, and an estimated residual value of $1,500?

• A) Straight-line
• B) Productive output (with increasing output levels)
• C) Sum-of-the-years'-digits
• D) Declining balance

Understand the importance of role development and management as part of the socialization process.

Describe different theoretical approaches to explaining the socialization process and employee adaptation.

Understand the contributions of heredity and environment to intelligence.

Recognize the concept of predictive validity and its importance in intelligence testing.

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Definitions:

Fixed Assets

Fixed Assets are long-term tangible assets, such as buildings, machinery, and equipment, used in the operations of a business and not expected to be converted to cash within a year.

Current Assets

Assets that are expected to be converted into cash, sold or consumed within one year or within the operating cycle of a business, whichever is longer.

Intangible Assets

Non-physical assets that have value, such as patents, trademarks, and copyrights, known for their long-term benefits to a company.

Gain on Sale

The profit recognized when an asset is sold for more than its carrying amount.