Answer:
Explanation:One notable example of a contribution made by a team of climatologists in Canada is their involvement in the development and maintenance of global climate models. Canada is home to several renowned research institutions and universities that actively participate in international collaborations aimed at understanding and predicting climate change.
The Canadian team of climatologists, often working in partnership with international organizations like the Intergovernmental Panel on Climate Change (IPCC), contributes to the improvement of climate models that simulate the Earth's climate system. These models are complex computer-based simulations that incorporate various factors such as atmospheric conditions, ocean currents, land surface processes, and greenhouse gas emissions.
The climatologists in Canada contribute by conducting research, collecting and analyzing data, and refining the mathematical algorithms used in climate models. Their work involves developing new parameterizations, which are mathematical representations of physical processes, to better capture the interactions between different components of the climate system. They also contribute to the validation and evaluation of the models by comparing the simulated results with observational data.
The goal of their work is to enhance the accuracy and reliability of global climate models, which are crucial tools for understanding the past, present, and future climate patterns. These models help policymakers and scientists assess the potential impacts of climate change and formulate strategies for mitigation and adaptation.
Overall, the contribution of Canadian climatologists in advancing global climate models demonstrates their commitment to international collaboration and their dedication to understanding and addressing the challenges posed by climate change on a global scale.
On January 2, 20X1, St. Paul Vision Center purchased equipment at a cost of $63,000. Before placing the equipment in service, St. Paul spent $2,200 for special chips, $800 for a platform, and $4,000 to customize the equipment. St. Paul management estimates that the equipment will remain in service for 6 years and have a residual value of $16,000. The equipment can be expected to process 18,000 examinations in each of the first 4 years and 14,000 tests in each of the next 2 years. In trying to decide which depreciation method to use, Lana Rich, the general manager, requests a depreciation schedule for each method (straight-line, units-of- production, and double declining balance). _ Required A. Prepare a depreciation schedule for each of the depreciation methods, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. B. St.Paulreportstocreditorsinthefinancialstatementsusingthedepreciationmethodthat maximizes reported income in the early years of asset use. For income tax purposes, however, the company uses the depreciation method that minimizes income-tax payments in those early years. Consider the first year that St. Paul uses the equipment. Identify the depreciation methods that meet the general manager’s objectives, assuming the income tax authorities would permit the use of any of the methods.
A. The Depreciation Expense is $7,833.33. B. Depreciation per Unit is $0.022 per examination/test. C. The double declining balance method for income tax purposes in the first year of using the equipment.
Depreciation Schedule:
A. Straight-line Method:
The straight-line method allocates the cost of an asset evenly over its useful life. In this case, the asset cost is $63,000, and the useful life is 6 years with a residual value of $16,000.
The annual depreciation expense can be calculated as follows:
Depreciation Expense = (Cost - Residual Value) / Useful Life
= ($63,000 - $16,000) / 6
= $7,833.33
The depreciation schedule for the straight-line method is as follows:
| Year | Asset Cost | Depreciation Expense | Accumulated Depreciation | Asset Book Value |
|------|------------|---------------------|--------------------------|------------------|
| 1 | $63,000 | $7,833.33 | $7,833.33 | $55,166.67 |
| 2 | - | $7,833.33 | $15,666.67 | $47,333.33 |
| 3 | - | $7,833.33 | $23,500.00 | $39,500.00 |
| 4 | - | $7,833.33 | $31,333.33 | $31,666.67 |
| 5 | - | $7,833.33 | $39,166.67 | $23,833.33 |
| 6 | - | $7,833.33 | $47,000.00 | $16,000.00 |
B. Units-of-Production Method:
The units-of-production method allocates the cost of an asset based on its usage. In this case, the asset is expected to process 18,000 examinations in each of the first 4 years and 14,000 tests in each of the next 2 years. The depreciation per unit can be calculated as follows:
Depreciation per Unit = (Cost - Residual Value) / Total Expected Units
= ($63,000 - $16,000) / (4 * 18,000 + 2 * 14,000)
= $0.022 per examination/test
The depreciation schedule for the units-of-production method is as follows:
| Year | Asset Cost | Depreciation Expense | Accumulated Depreciation | Asset Book Value |
|------|------------|---------------------|--------------------------|------------------|
| 1 | $63,000 | $3,960.00 | $3,960.00 | $59,040.00 |
| 2 | - | $3,960.00 | $7,920.00 | $55,080.00 |
| 3 | - | $3,960.00 | $11,880.00 | $51,120.00 |
| 4 | - | $3,960.00 | $15,840.00 | $47,160.00 |
| 5 | - | $3,080.00 | $18,920.00 | $44,080.00 |
| 6 | - | $3,080.00 | $22,000.00 | $41,000.00 |
C. Double Declining Balance Method:
The double declining balance method depreciates an asset at an accelerated rate. The annual depreciation expense is calculated by doubling the straight-line rate and applying it to the net book value
(cost - accumulated depreciation). The depreciation schedule for the double declining balance method is as follows:
| Year | Asset Cost | Depreciation Expense | Accumulated Depreciation | Asset Book Value |
|------|------------|---------------------|--------------------------|------------------|
| 1 | $63,000 | $15,666.67 | $15,666.67 | $47,333.33 |
| 2 | - | $15,666.67 | $31,333.33 | $31,666.67 |
| 3 | - | $9,400.00 | $40,733.33 | $22,933.33 |
| 4 | - | $5,640.00 | $46,373.33 | $17,293.33 |
| 5 | - | $3,384.00 | $49,757.33 | $13,909.33 |
| 6 | - | $3,384.00 | $53,141.33 | $10,525.33 |
Objective Analysis:
The depreciation methods that meet the general manager's objectives depend on the reporting to creditors and income tax purposes.
For reporting to creditors, the method that maximizes reported income in the early years is the straight-line method. This method evenly spreads the depreciation expense over the useful life, resulting in higher reported income in the early years.
For income tax purposes, the method that minimizes income tax payments in the early years is the double declining balance method. This method accelerates the depreciation expense, resulting in higher deductions in the early years, reducing taxable income and income tax payments.
Therefore, to meet the general manager's objectives, St. Paul Vision Center should use the straight-line method for reporting to creditors and the double declining balance method for income tax purposes in the first year of using the equipment.
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On January 2, 20X1, St. Paul Vision Center purchased equipment at a cost of $63,000. Before placing the equipment in service, St. Paul spent $2,200 for special chips, $800 for a platform, and $4,000 to customize the equipment. St. Paul management estimates that the equipment will remain in service for 6 years and have a residual value of $16,000. The equipment can be expected to process 18,000 examinations in each of the first 4 years and 14,000 tests in each of the next 2 years. In trying to decide which depreciation method to use, Lana Rich, the general manager, requests a depreciation schedule for each method (straight-line, units-of- production, and double declining balance). _ Required A. Prepare a depreciation schedule for each of the depreciation methods, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. B. St.Paulreportstocreditorsinthefinancialstatementsusingthedepreciationmethodthat maximizes reported income in the early years of asset use. For income tax purposes, however, the company uses the depreciation method that minimizes income-tax payments in those early years. Consider the first year that St. Paul uses the equipment. Identify the depreciation methods that meet the general manager’s objectives, assuming the income tax authorities would permit the use of any of the methods.
A. The Depreciation Expense is $7,833.33. B. Depreciation per Unit is $0.022 per examination/test. C. The double declining balance method for income tax purposes in the first year of using the equipment.
Depreciation Schedule:
A. Straight-line Method:
The straight-line method allocates the cost of an asset evenly over its useful life. In this case, the asset cost is $63,000, and the useful life is 6 years with a residual value of $16,000.
The annual depreciation expense can be calculated as follows:
Depreciation Expense = (Cost - Residual Value) / Useful Life
= ($63,000 - $16,000) / 6
= $7,833.33
The depreciation schedule for the straight-line method is as follows:
| Year | Asset Cost | Depreciation Expense | Accumulated Depreciation | Asset Book Value |
|------|------------|---------------------|--------------------------|------------------|
| 1 | $63,000 | $7,833.33 | $7,833.33 | $55,166.67 |
| 2 | - | $7,833.33 | $15,666.67 | $47,333.33 |
| 3 | - | $7,833.33 | $23,500.00 | $39,500.00 |
| 4 | - | $7,833.33 | $31,333.33 | $31,666.67 |
| 5 | - | $7,833.33 | $39,166.67 | $23,833.33 |
| 6 | - | $7,833.33 | $47,000.00 | $16,000.00 |
B. Units-of-Production Method:
The units-of-production method allocates the cost of an asset based on its usage. In this case, the asset is expected to process 18,000 examinations in each of the first 4 years and 14,000 tests in each of the next 2 years. The depreciation per unit can be calculated as follows:
Depreciation per Unit = (Cost - Residual Value) / Total Expected Units
= ($63,000 - $16,000) / (4 * 18,000 + 2 * 14,000)
= $0.022 per examination/test
The depreciation schedule for the units-of-production method is as follows:
| Year | Asset Cost | Depreciation Expense | Accumulated Depreciation | Asset Book Value |
|------|------------|---------------------|--------------------------|------------------|
| 1 | $63,000 | $3,960.00 | $3,960.00 | $59,040.00 |
| 2 | - | $3,960.00 | $7,920.00 | $55,080.00 |
| 3 | - | $3,960.00 | $11,880.00 | $51,120.00 |
| 4 | - | $3,960.00 | $15,840.00 | $47,160.00 |
| 5 | - | $3,080.00 | $18,920.00 | $44,080.00 |
| 6 | - | $3,080.00 | $22,000.00 | $41,000.00 |
C. Double Declining Balance Method:
The double declining balance method depreciates an asset at an accelerated rate. The annual depreciation expense is calculated by doubling the straight-line rate and applying it to the net book value
(cost - accumulated depreciation). The depreciation schedule for the double declining balance method is as follows:
| Year | Asset Cost | Depreciation Expense | Accumulated Depreciation | Asset Book Value |
|------|------------|---------------------|--------------------------|------------------|
| 1 | $63,000 | $15,666.67 | $15,666.67 | $47,333.33 |
| 2 | - | $15,666.67 | $31,333.33 | $31,666.67 |
| 3 | - | $9,400.00 | $40,733.33 | $22,933.33 |
| 4 | - | $5,640.00 | $46,373.33 | $17,293.33 |
| 5 | - | $3,384.00 | $49,757.33 | $13,909.33 |
| 6 | - | $3,384.00 | $53,141.33 | $10,525.33 |
Objective Analysis:
The depreciation methods that meet the general manager's objectives depend on the reporting to creditors and income tax purposes.
For reporting to creditors, the method that maximizes reported income in the early years is the straight-line method. This method evenly spreads the depreciation expense over the useful life, resulting in higher reported income in the early years.
For income tax purposes, the method that minimizes income tax payments in the early years is the double declining balance method. This method accelerates the depreciation expense, resulting in higher deductions in the early years, reducing taxable income and income tax payments.
Therefore, to meet the general manager's objectives, St. Paul Vision Center should use the straight-line method for reporting to creditors and the double declining balance method for income tax purposes in the first year of using the equipment.
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