Choose the Correct Answer.In Calculating Depreciation

question 94

Multiple Choice

Choose the correct answer.In calculating depreciation:

• A)Straight-line depreciation is higher than double declining balance depreciation in the early years.
• B)Straight-line depreciation is higher than double declining balance depreciation in the later years.
• C)Double declining balance is a method of straight-line depreciation.
• D)MACRS depreciation requires that salvage value be taken into account.

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Definitions:

Cram-Down Round

A financing round typically at a lower valuation, in which existing shareholders have their shares diluted if they do not participate.

Founders' Ownership

The proportion of a company's equity that is owned by its original creators or founders.

Dilution

A reduction in the ownership percentage of a share of stock caused by the issuance of new shares.

Share Price

The market price of a single share of a company's stock, reflecting the value investors place on the company.