Answered: Under regular accelerated MACRS the…

Name: Under regular accelerated MACRS the straight line method is used in ye
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Description: Under regular accelerated MACRS the straight line method is used in years where the amount of straight line depreciation exceeds the amount of accelerated depreciation. True or false

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Accounting

Under regular accelerated MACRS the straight line method is used in years where the amount of straight line depreciation exceeds the amount of accelerated depreciation. True or false

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8MC: An accelerated depreciation method that takes more expense in the first few years of the assets life...

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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 best describes an accelerated depreciation method? A. A method by which an equal amount of expense is assigned for every full year of use. B. A method by which depreciation is based on the level of actual usage rather than the passage of time. C. A method of determining depreciation which assigns larger expenses to the initial years of an asset’s service and smaller expenses to the later years. D. A method of allocating the cost of a wasting asset to expense over the periods during which the value is removed from the property.
Under which method of depreciation the amount of depreciation every year remains the same a. Diminishing balance method b. Double declining depreciation method c. Units of production method d. Straight line method
Which of the following statements is true when comparing double declining balance depreciation to straight-line depreciation? a. Double declining balance deductions will be greater than straight-lin e deductions in all years of the asset’s depreciable life b. Double declining balance deductions will be greater than straight-line deductions in early years of the asset’s depreciable life but less in later years c. Straight-line deductions will be greater than double declining balance deductions in all years of the asset’s depreciable life d. Double declining balance deductions will be less than straight-line deductions in early years of the asset’s depreciable life but greater in later years
What is the correct process for determining depreciation expense for partial periods? A: The straight line method should be used for the first year of the assets life. B: The salvage value should be equal to last year's depreciation amount. C: No depretiation should be expensed in the year of acquisition. D: Depreciation for physical years should be broken up between fiscal years.
Consider the data in the following two tables: Identify the depreciation method used for each depreciation schedule as one of the following:(a) Double-declining-balance depreciation(b) Straight-line depreciation(c) DOB with conversion to straight-line depreciation, assuming a zero salvage value(d) MACRS seven-year depreciation with the half-year convention(e) Double-declining-balance (with conversion to straight-line depreciation)
Which of the following is true? a.If using the units-of-output method, it is possible to depreciate more than the depreciable cost. b.If using the double-declining-balance method, the total amount of depreciation expense during the life of the asset will be the highest. c.If using the straight-line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance. d.Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.
When depreciation estimates are revised, all years of the asset’s life are affected. True False
Which of the following statements is true? - When using the double-declining-balance method, the total amount of depreciation expense during the life of the asset will be the highest. -When using the units-of-output method, it is possible to depreciate more than the depreciable cost. -When using the straight-line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance. -Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.
The straight-line depreciation method and the double-declining-balance depreciation method: Group of answer choices Produce the same depreciation expense each year. Produce the same total depreciation over an asset's useful life. Produce the same book value each year. Are the only acceptable methods for calculating depreciation expense.
The total amount of depreciation taken over the life of a depreciable asset should be less if the double-declining balance depreciation method is used than if the straight-line method is used. Select one: True False
Which of the statements is incorrect concerning the depreciation methods? * a. Under the output method, the cost per unit of production is constant. b. The straight-line method is particularly appropriate where the asset is expected to decline in usefulness as a function of time and the expected use pattern of the asset is fairly constant over time. c. The sum of the years' digits method provides for a decreasing depreciation charge. d. First-year depreciation under the double declining balance method is computed as the depreciable amount multiplied by double the straight line rate. . None of the choices is incorrect