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NEW QUESTION: 1
At the end of 2010, a firm changes its depreciation method from the double-declining balance method to straight line. The firm only has one asset, a building that cost $4,000,000 and has a salvage value of $200,000 after a life of 20 years. The tax rate is 20%. The asset was purchased in January of
2 008. What will be the cumulative effect of the change on the 2010 depreciation resulting from the years
2 008 and 2009?
A. $380,000 lower
B. $190,000 lower
C. $210,000 lower
Answer: A
Explanation:
Depreciation under the straight-line method would be $190,000 each year [($4,000,000 -
$ 200,000)/20]. Depreciation under the double-declining balance method would be $400,000 in the first year. The double-declining rate is 10% [(100%/20) x 2]. Applying the rate of 10% to the beginning book value of $4,000,000 = $400,000 for the first year. The second year will be the beginning book value of
$ 3,600,000 ($4,000,000 - $400,000) x .1 = $360,000. The difference between $400,000 and $190,000, of
$ 210,000, will be the change in the depreciation expense for the year 2008. The second year for the straight line is $190,000. The difference between $360,000 and $190,000, of $170,000, will be the change in the depreciation expense for the year 2009. The cumulative effect of the change for the year 2010 will be $210,000 + $170,000 = $380,000 lower.
NEW QUESTION: 2
A company has an Active Directory Domain Services (AD DS) domain. All client computers run Windows 8.
You need to minimize the amount of Trusted Platform Module (TPM) authorization information that is stored in the registry.
What should you do?
A. Create a Group Policy object (GPO) that sets the Configure the level of TPM owner authorization information available to operating system policy setting to None.
B. Enable Platform Configuration Register indices (PCRs) 0, 2, 4, and 11 for the Configure TPM validation profile for native UEFI firmware configuration policy setting.
C. Create a Group Policy object (GPO) that disables the Configure the level of TPM owner authorization information available to operating system policy setting.
D. Create a Group Policy object (GPO) that enables the Turn on TPM Local Encryption policy setting.
Answer: A
NEW QUESTION: 3
Which of the following would be the most suitable investment for a client who has retired and needs some current income to augment her social security check?
A. growth fund
B. money market fund
C. variable life policy
D. U.S. government bond fund
Answer: D
Explanation:
Explanation/Reference:
Explanation: Of the choices provided, the most suitable investment for a client who has retired and needs some current income to augment her social security check would be a U.S. government bond fund. The growth fund is mostly invested in stocks that provide their return in the form of capital appreciation, not dividend income. The variable life policy would not offer her the current income she needs and may even have a surrender charge. Furthermore, these policies are insurance, not investments. A money market fund is good for capital preservation and some of her funds should be invested in a money market fund to meet this objective, but it will not provide her with current income. A U.S. government bond fund is less risky than other bond funds--although its value will fluctuate with interest rate changes-and will provide her with the supplemental income she requires.