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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.An accelerated depreciation method that takes more expense in the first few years of the assets life is ________. A. units-of-production depreciation B. double-declining-balance depreciation C. accumulated depreciation D. straight-line depreciationAt 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?
- In a written down value method, the amount of depreciation _________________. a. Increases year after year b. Will be the same as book value c. Reduces year after year d. Remains the same for all the yearsThe 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.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
- True or false SL depreciation assumes that an equal share of the total depreciation is not taken each year during the asset’s life?TRUE OR FALSE: In depreciation analysis, the method that will yield the highest book value at the end of n years is always the top factor to consider. Replacement ends depreciation. If a property’s market value becomes 0, the owner has no right to sell it at a value > 0 since this will be taxable at a very large rate. Any net income obtained from selling a depreciated property according to its last market value is considered acapital gain.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
- The double-declining-balance method is to be used for an asset with a cost of $90.000. estimated salvage value of $ 12.000. and estimated useful life of five years.(a) What is the depreciation for the first three tax years, assuming that the asset was placed in service at the beginning of the year?(b) If switching to the straight-line method is allowed, when is the optimal time to switch?Which of the following is considered when depreciating an asset under the cost model? The cost of the asset. The change in the fair value of the asset. The useful life of the asset. Both a and b. Which of the following depreciation methods will most likely result in the highest amount of reported profit in the early years of an asset’s useful life? Straight line 150% declining balance Double declining balance Sum-of-the-years’ digits The most commonly used depreciation method is the straight-line method. replacement method. depreciation method based on revenue. inventory method.Which of the following will maximize net income by minimizing depreciation expense in the first year of the asset’s life? a. Short service life, high residual value, and straightline depreciation.b. Long service life, high residual value, and straightline depreciation.c. Short service life, low residual value, and doubledeclining- balance depreciation.d. Long service life, high residual value, and doubledeclining- balance depreciation.
