Trainer Ltd Is Trying to Decide Whether to Change from the Reducing

question 18

Multiple Choice

Trainer Ltd is trying to decide whether to change from the reducing balance method of depreciation to the straight-line method for both accounting and tax purposes. Using the reducing balance method at the rate allowable for taxation purposes, the expense would be $1 020 000. If it changed to the straight-line method, depreciation expense would be $680 000. If the straight-line method were used instead of the reducing balance method, what would be the effect on the following?
-Depreciation expense:

• A) $122 400 reduction
• B) $217 600 reduction
• C) $340 000 reduction
• D) $217 600 increase.

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Definitions:

Integrative Negotiation

A negotiation approach that emphasizes collaboration, mutual benefit, and problem-solving to achieve optimal outcomes for all parties involved.

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Various categories or kinds of concerns, investments, or involvements individuals or groups have.

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Research methods involving the collection of data from a predefined group of respondents to gain information and insights.