Answered: A method that excludes residual value…

Name: A method that excludes residual value from the depreciation base for t
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: A method that excludes residual value from the depreciation base for the calculation of depreciation is:a. straight-lineb. sum-of-the-years'-digitsc. double-declining-balanced. activity

Business

Accounting

A method that excludes residual value from the depreciation base for the calculation of depreciation is: a. straight-lineb. sum-of-the-years'-digitsc. double-declining-balanced. activity

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 4MC

See similar textbooks

Similar questions

Characteristics of Depreciation Methods Below is a common list of depreciation methods and characteristics related to depreciation. Depreciation Methods a. Straight-line depreciation method b. Declining balance depreciation method c. Units-of-production depreciation method when actual units produced increases over the life of the asset Characteristics 1. Results in depreciation expense that decreases over the life of the asset. 2. Results in depreciation expense that increases over the life of the asset. 3. Allocates the same amount of cost to each period of a depreciable assets life. 4. Calculated by multiplying a constant depreciation rate by depreciable cost. 5. Calculated by applying a constant depreciation rate to the assets book value at the beginning of the period. 6. Results in lowest income taxes in early years of the assets life. 7. Consistent with the matching principle. Required: Match one or more of the depreciation methods with each characteristic.
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 depreciation
Which depreciation method ignores residual value when computing the depreciable base of an asset? a. sum-of-the-year's-digits b. double-declining-balance c. composite depreciation d. group depreciation
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
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.
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 depreciation method that does not initially use the residual value in depreciation calculations is thea. straight-line method.b. units-of-production method.c. double-declining balance method.d. direct method.
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
Contrast the effects of the straight-line, declining-balance, and activity-based methods on annual depreciation expense.
Which of the following depreciation methods will result in the most depreciation expense over the life of an asset? Select one: a. Double-declining balance method b. All three methods will result in the same amount of depreciation expense. c. Units-of-production method d. Straight-line method e. Cannot be determined from the information given.
Which of the following methods applies a declining depreciation rate each period to an asset's constant value? a.Double-declining-balance methodb.Straight-line methodc.Sum-of-the-years'-digits methodd.Units-of-production method