Branch Industries Changes from Declining Balance Depreciation to Straight-Line Depreciation

question 48

Essay

Branch Industries changes from declining balance depreciation to straight-line depreciation for existing assets. Describe in detail the way Branch would account for the change and include reasons for the accounting.

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Definitions:

Property Taxes

Levies imposed by a government on property owners based on the assessed value of their property.

Compounded Monthly

The process where the interest earned on an investment is added to the principal each month, so that the interest for the next month is calculated on the total.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed over a period of time.

Average Increase

The mean amount added over a series of increments, often used to measure growth or inflation over time.