Using the Double-Declining Balance Method, Depreciation for 2013 and the Book

question 104

Multiple Choice

Using the double-declining balance method, depreciation for 2013 and the book value at December 31, 2013, would be:

• A)$26,400 and $45,600.
• B)$28,800 and $43,200.
• C)$28,800 and $37,200.
• D)$26,400 and $36,600.

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Definitions:

Sales Commissions

Payments made to sales personnel based on the amount of sales they generate, often a percentage of the sales value.

Fixed Manufacturing Expenses

Costs associated with production that do not change with the level of manufacturing output, such as salaries of managerial staff or rent of the production facility.

Fixed Selling

A category of expenses that do not vary with the level of production or sales, such as salaries of sales personnel and advertising costs.

Administrative Expenses

Overhead or general expenses related to the management and general operations of a business, including salaries of executive personnel, accounting, and HR.