Using the Double-Declining Balance Method, Depreciation for 2010 Would Be

question 54

Multiple Choice

Using the double-declining balance method, depreciation for 2010 would be:

• A)$28,800.
• B)$18,240.
• C)$17,280.
• D)None of these is correct.Depreciation, 2010 = [$72,000 ($72,000 40%)] 40% = $17,280

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Definitions:

Jensen's Measure

A metric used to evaluate the performance of an investment manager by comparing their returns with those of a benchmark, adjusting for market risk.

Risk-Free Return

The theoretical return on an investment with no risk of financial loss, typically associated with government bonds.

Wildcat Fund

An investment fund that takes higher risks with the expectation of higher returns, often investing in speculative ventures.

Sharpe Measure

A metric used to gauge the performance of an investment by adjusting for its risk, calculated as the difference between the investment's return and the risk-free rate, divided by the investment's standard deviation.