Homework Answers
Answer
True
Reason
The total amount of depreciation charged over an asset's entire useful life is the same irrespective of the choice of depreciation method.The Annual Depreciation expense varies considerably among the different methods,but the Total Depreciation expense is the same for the useful life period.
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Total depreciation expense over an asset's useful life will be identical under all methods of depreciation....
The total depreciation across the years of an asset's life is the same under the double-declining-balance...
The total depreciation across the years of an asset's life is the same under the double-declining-balance method or the straight-line method. True or False
At the end of an asset's useful life, the balance in Accumulated Depreciation will: A. be...
At the end of an asset's useful life, the balance in Accumulated Depreciation will: A. be a greater amount under straight - line depreciation than under double declining -balance depreciation B. be greater under units - of - production depreciation than under straight - line depreciation C. be the same amount under all the depreciation methods D. be a lesser amount under double -declining -balance depreciation than under units of - production depreciation Depreciation computed under double - declining balance...
At the end of an asset's useful life, the balance in Accumulated Depreciation will: O A....
At the end of an asset's useful life, the balance in Accumulated Depreciation will: O A. be a greater amount under straight-line depreciation than under double-declining - balance depreciation O B. be greater under units-of-production depreciation than under straight-line depreciation O c. be the same amount under all the depreciation methods OD. be a lesser amount under double-declining - balance depreciation than under units-of-production depreciation Depreciation computed under double-declining - balance will decrease each year because: O A. the book...
Which of the following statements is false? Once you select a depreciation method, then you must...
Which of the following statements is false? Once you select a depreciation method, then you must use this method for all depreciable assets. The balance in the accumulated depreciation account will be the same at the end of an asset's useful life under all the methods allowed under GAAP. The book value at the end of an asset's useful life will be the same under all the depreciation methods allowed under GAAP. The annual depreciation expense and year-end book values...
Blueprint Connection: Depreciation Methods Depreciation is the process of allocating the cost of an asset to...
Blueprint Connection: Depreciation Methods Depreciation is the process of allocating the cost of an asset to expense over the asset's estimated useful life. The amount depreciated is the cost of the asset less the asset's expected residual value. depreciation method allocates larger amounts of depreciation expense to earlier periods of an asset's life and smaller amounts of depreciation expense to later periods of an asset's life. depreciation allocates an equal amount of the asset's cost to depreciation expense for each...
How is depreciation allocated when using the straight-line method? Depreciation expense is allocated in proportion to...
How is depreciation allocated when using the straight-line method? Depreciation expense is allocated in proportion to an asset's use in operations A constant percentage of an asset's book value as of the beginning of each period is allocated to depreciation expense • An equal amount of depreciation expense is allocated each period of an asset's useful life Salvage value is the expected net recovery when the asset is sold or removed from service. • True False
6. Depreciation methods Firms can use various methods to calculate depreciation, and it is important for...
6. Depreciation methods Firms can use various methods to calculate depreciation, and it is important for you to consider these different methods when evaluating firms. The impact of different depreciation methods is stronger for asset-intensive firms. Major factors that affect the depreciation of a fixed asset include the purchase cost, residual/salvage value, and estimated useful life of the asset. The purchase cost includes the asset's explicit cost plus necessary costs associated with setting up and operating the asset (such as...
SportsWorld purchased a machine for $190,000. The machine has a useful life of 8 years and...
SportsWorld purchased a machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. SportsWorld estimates that the machine could produce 750,000 units of product over its useful life. In the first year, 95,000 units were produced. In the second year, production increased to 111,000 units. Using the units-of-production method, what is the amount of depreciation that should be recorded for the second year? Multiple Choice $49,440 $22,800 $26,640 $36,000 Factor(s) that might...
Factors considered in determining an intangible asset's useful life include all of the following except A....
Factors considered in determining an intangible asset's useful life include all of the following except A. the amortization method used. B. any provisions for renewal or extension of the asset's legal life. C. the expected use of the asset. D. any legal or contractual provisions that may limit the useful life.
6. Regardless of the GAAP depreciation method selected.. a. the maximum allowable depreciation over the asset's...
6. Regardless of the GAAP depreciation method selected.. a. the maximum allowable depreciation over the asset's life is the same. b. the total accumulated depreciation at the end of the asset's life will equal the depreciable base. c. the total accumulated depreciation at the end of the asset's life cannot exceed the depreciable base. d. all of the above. On August 1 of the current year, a company with a December 31 year-end buys a nonresidential building for $600,000, which...
At the end of an asset's useful life, the balance in Accumulated Depreciation will: A. be a greater amount under straight - line depreciation than under double declining -balance depreciation B. be greater under units - of - production depreciation than under straight - line depreciation C. be the same amount under all the depreciation methods D. be a lesser amount under double -declining -balance depreciation than under units of - production depreciation Depreciation computed under double - declining balance...
At the end of an asset's useful life, the balance in Accumulated Depreciation will: O A. be a greater amount under straight-line depreciation than under double-declining - balance depreciation O B. be greater under units-of-production depreciation than under straight-line depreciation O c. be the same amount under all the depreciation methods OD. be a lesser amount under double-declining - balance depreciation than under units-of-production depreciation Depreciation computed under double-declining - balance will decrease each year because: O A. the book...
Which of the following statements is false? Once you select a depreciation method, then you must use this method for all depreciable assets. The balance in the accumulated depreciation account will be the same at the end of an asset's useful life under all the methods allowed under GAAP. The book value at the end of an asset's useful life will be the same under all the depreciation methods allowed under GAAP. The annual depreciation expense and year-end book values...
Blueprint Connection: Depreciation Methods Depreciation is the process of allocating the cost of an asset to expense over the asset's estimated useful life. The amount depreciated is the cost of the asset less the asset's expected residual value. depreciation method allocates larger amounts of depreciation expense to earlier periods of an asset's life and smaller amounts of depreciation expense to later periods of an asset's life. depreciation allocates an equal amount of the asset's cost to depreciation expense for each...
How is depreciation allocated when using the straight-line method? Depreciation expense is allocated in proportion to an asset's use in operations A constant percentage of an asset's book value as of the beginning of each period is allocated to depreciation expense • An equal amount of depreciation expense is allocated each period of an asset's useful life Salvage value is the expected net recovery when the asset is sold or removed from service. • True False
6. Depreciation methods Firms can use various methods to calculate depreciation, and it is important for you to consider these different methods when evaluating firms. The impact of different depreciation methods is stronger for asset-intensive firms. Major factors that affect the depreciation of a fixed asset include the purchase cost, residual/salvage value, and estimated useful life of the asset. The purchase cost includes the asset's explicit cost plus necessary costs associated with setting up and operating the asset (such as...
6. Regardless of the GAAP depreciation method selected.. a. the maximum allowable depreciation over the asset's life is the same. b. the total accumulated depreciation at the end of the asset's life will equal the depreciable base. c. the total accumulated depreciation at the end of the asset's life cannot exceed the depreciable base. d. all of the above. On August 1 of the current year, a company with a December 31 year-end buys a nonresidential building for $600,000, which...
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