Answered: True or False: Using the MACRS method…

Name: True or False: Using the MACRS method of depreciation, an asset's Boo
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Description: True or False: Using the MACRS method of depreciation, an asset's Book Value will depreciate to$0 in the same amount of time as the length of its life class.O TrueO False

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Accounting

True or False: Using the MACRS method of depreciation, an asset's Book Value will depreciate to $0 in the same amount of time as the length of its life class. O True O False

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 4TF: The straight-line method of depreciation allocates the cost of an asset more rapidly than the...

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Similar questions

At the end of the expected useful life of a depreciable asset with an estimated 15% residual value, the accumulated depreciation would equal the original cost of the asset under which of the following depreciation methods?
LO1 The purpose of depreciation is to (a) spread the cost of an asset over its useful life. (b) show the current market value of an asset. (c) set up a reserve fund to purchase a new asset. (d) expense the asset in the year it was purchased.
LO1 Depreciable cost is the difference between the original cost of the asset and its accumulated depreciation.
A fixed asset with a 5-year estimated useful life is sold during the second year. How would the use of the straight-line method of depreciation instead of the double-declining-balance method of depreciation affect the amount of gain or loss on the sale of the fixed asset?
The straight-line method of depreciation allocates the cost of an asset more rapidly than the sum-of-the-years-digits method.
Which of the following is not a requirement for an asset to be depreciable?a. It must have a life longer than 1 year b. It must have a basis(initial purchase plus installation cost) greater than $1,000 c. It must be held with the intent to produce income d. It must wear out or get used up.
Which method of deprecaution is used when the cost of an asset is written off in equal amounts over its expected economic life? A fixed instalment B accelerated C sum of the digits D diminishing balance
True or False Over the life of a depreciable asset, its recorded cost decreases, the related accumulated depreciation increases, and its book value remains constant
MACRS-GDS deductions are a combination of which other methods of depreciation? a. Sum of Years Digits and Straight Line b. Sum of Years Digits and Declining Balance c. Double Declining Balance and 150% Declining Balance d. Double Declining Balance and Straight Line.
A fixed asset with a cost of $32,167.00 and accumulated depreciation of $28,950.30 is sold for $5,468.39. What is the amount of the gain or loss on disposal of the fixed asset? Select the correct answer. A. $2,251.69 loss B. $2,251.69 gain C. $3,216.70 gain D. $3,216.70 loss
True or False: Regardless of the depreciation method used, the book value of a tangible long-term asset at the end of its useful life should equal the asset’s residual value.
which of the following statements is not correct? 1) generally accepted accounting principles require that the original cost of a long-term asset continue to appear in the asset account until the disposition of the asset. 2)The book value of a long-term asset is reduced each year as depreciation is recorded Building and trucks are examples of long -term assets 3)Salvage value is computed by subtracting the accumulated depreciation from the cost of a long-term asset.