If the 150% Declining Balance Method Is Being Used and an Asset

question 137

Multiple Choice

If the 150% declining balance method is being used and an asset has a useful life of 20 years what is the depreciation rate?

• A) 7.5%.
• B) 10%.
• C) 15%.
• D) Some other amount.

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Definitions:

Ernst & Ernst v. Hochfelder

A 1976 Supreme Court case establishing that plaintiffs in securities fraud cases must prove that the defendant acted with scienter, or intent to deceive, manipulate, or defraud.

Supreme Court

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SEC Rule 10b-5

A regulation enacted by the U.S. Securities and Exchange Commission that prohibits fraud in the sale of securities.

Intentional Conduct

Actions undertaken with awareness and deliberate intent, often relevant in establishing liability or culpability in legal cases.