discuss the currency depreciation vs. devaluation. Also‚ discuss the impact of currency depreciation from Indian economy perspective. Currency Depreciation & Impact Rajesh Kanjani (34473) rajesh.kanjani@hotmail.com SIBM Exe. MBA (2011-2014) Currency Devaluation vs. Depreciation The devaluation and deprecation of currency go more or less hand in hand. Currency depreciation is an economic result‚ whereas devaluing a currency is an act that results in currency depreciation. Many a times they
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Depreciation Methods Depreciation is the accounting process of allocating the cost of tangible assets to expense in a systematic and rational manner to those periods expected to benefit from the use of the asset. Factors Involved in the Depreciation Process 1. What depreciable base is to be used for the asset? 2. What is the asset’s useful life? 3. What method of cost apportionment is best for the asset? Depreciable Base for the Asset The base established for depreciation is a function
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4.1 Understand tax depreciation procedures and the effect of depreciation on the firm’s cash flows. 1) Depreciation deductions‚ like any other business expenses‚ reduce the income that a firm reports on its income statement. Answer: TRUE Diff: 1 Topic: Depreciation Learning Obj.: LG 1 Learning Outcome: F-02 Question Status: Previous Edition AACSB Tag: Analytic Skills 2) Non-cash charges are expenses that involve an actual outlay of cash during the period but are not deducted on the income
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Depreciation Essay A method of accelerated depreciation‚ in which double the straight-line depreciation amount is taken the first year and then that same percentage‚ is applied to the un-depreciated amount in subsequent years is called double-declining-balance-method. Depreciation methods that provide a higher depreciation charge in the first year of an asset’s life and gradually decreasing charges in subsequent years are called “accelerated depreciation methods”. This may be
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assets acquired during 2010: Asset Cost Date Place in Service Office equipment $10‚000 02/03/2010 Machinery $560‚000 07/22/2010 Used delivery truck* $15‚000 08/17/2010 *Not considered a luxury automobile‚ thus not subject to the luxury automobile limitations During 2010‚ TM had huge success (and had no §179 limitations and Steve acquired more assets the next year to increase its production capacity. These are the assets which were acquired during 2011: Asset Cost Date Place in Service Computers&Info
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lathe on June 30‚ 2007‚ at a cost of $80‚000. The residual value of the lathe was estimated to be $5‚000 at the end of a five-year life. The lathe was sold on March 31‚ 2011‚ for $17‚000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Prepare the journal entry to record the sale. Assuming the company’s year end is March 31. Depreciation for 2007-08: ((80000-5000)/5)
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Ameritrade’s Cost of Capital Harvard Case Study 1. What factors should Ameritrade management consider when evaluating the proposed advertising program and technology upgrades? Why? One factor that is significant and pertinent to this case is determining the cost of capital that should be employed for Ameritrade. An appropriate discount rate is required to derive the net present value of the advertising program and technology upgrades. With that said‚ estimating future cash flows
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April 11‚ 2012 Marriot Corporation: The Cost of Capital Background: Marriot Corporation began in 1927 with J. Willard Marriot’s root beer stand. Over the next 60 years‚ the company grew into one of the leading lodging and food service companies in the United States. Marriot has three major lines of business: lodging‚ contract services‚ and restaurants. Lodging operations included 361 hotels‚ with over 100‚000 rooms that generated 41% of sales in 1987 and 51% of profits. Contract services
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Definition: The market where transactions of money and financial assets are accomplished for short time is called money market. On the other end‚ capital market is meant that market where transactions of money and financial assets are occurred for a long period. * Institutions: Important institutions operating in the’ money market are central banks‚ commercial banks‚ acceptance houses‚ non bank financial institutions‚ bill brokers. Important institutions of the capital market are stock exchanges‚ commercial
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Task 1 Task 1 A start-up cost is a cost that you start with for example in the flower shop it would be a deposit on the shop and the first month’s rent. Also the first lot of stock‚ advertisement a sign‚ table‚ counter‚ till and a credit card machine. The operating costs are costs that you carry on paying for throughout the time your business is open‚ for example in the flower shop they would be rent‚ wages‚ heating and lighting‚ insurance‚ loan interest‚ drawing (personal salary) ‚ ribbons
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