A Mexican corporation is computing the depreciatio
A Mexican corporation is computing the depreciation expense of a piece of manufacturing equipment for the fiscal year ended December 31, 2010 using the information below. The company takes a full year’s depreciation in the year of acquisition.
The depreciation expense (in MXN) will most likely be:
A. 180,000 lower using the straight-line method compared with the double-declining balance method.
B. 140,000 higher using the units-of-production method compared with the straight-line method.
C. 112,000 higher using the double-declining method compared with the units-of-production method.
参考解答
Ans:C.
The difference between the double declining balance and units-of-production is:
400,000 – 288,000 = 112,000.
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