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

question 27

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?
-Net book value of assets:

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

Evaluate the effectiveness of patient education and identify indications of successful learning outcomes.

Utilize analogies and simplified explanations to facilitate patient understanding of health-related concepts.

Understand the concept of organizational clarity and its importance in a firm's success.

Recognize the impact of mergers and acquisitions on employees and corporate culture.

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Definitions:

Preferential Payments

Transactions made before a bankruptcy filing where a debtor gives preferential treatment to certain creditors over others.

Bankruptcy Filing

The formal process by which an individual or entity declares an inability to pay outstanding debts, seeking relief through legal proceedings.

Bankruptcy Trustee

A legally appointed individual responsible for managing the financial affairs of a person or business declared bankrupt, including asset liquidation and disbursing proceeds to creditors.

Chapter 7 Bankruptcy

A process under federal law designed to eliminate unsecured debts and liquidate non-exempt assets to pay creditors.