1. Which of the following is not needed to calculate annual straight-line depreciation? a. fair value one year after acq...
1. Which of the following is not needed to calculate annual straight-line depreciation?
a. fair value one year after acquisition
b. cost of the asset
c. estimated useful life
d. estimated salvage value
2. Depreciation methods which take larger amounts of depreciation in the early years of an asset's useful life are referred to as
a. accelerated
b. aggressive
c, cost based
d. unauthorized
Homework Answers
Answer 1: option (a) is correct
Explanation:
We know the formula for depreciation computed under straight line method is
Depreciation = (Original value of the asset - Estimated Salvage value) / Estimated useful life
Answer 2: option (a) is correct
Explanation:
Under accelerated methods of depreciation, the depreciation expense is more in the earlier life of the asset. For example Double declining depreciation method.
Add Answer to:
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