There are three different life (recovery period) values associated with a depreciable asset. Identify each by name and explain how it is correctly used.
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There are three different life (recovery period) values
associated with a
each by name and explain how it is correctly used.
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- Three key issues associated with determining depreciation expense are the depreciable base, ___________ and method of cost apportionment. Select one alternative: depreciable amount useful life salvage value purchase costOf the following, what information is required to calculate depreciation allowances under MACRSGDS? I. Useful life II. First cost. III. Salvage value. IV. Property class a. II and IV only. b. II, III, and IV only. c. I, II, and IV only. d. I, II, III, and IV.In calculating depreciation, both the long-lived asset's cost and useful life are based on estimates. Select one: O True O False
- When a number of low-cost depreciable assets with similar characteristics, service lives, and residual values is required, which depreciation method should be used? a. Compsite depreciation b. Replacement depreciation c. Group depreciation d. Retirement depreciationIdentify and define the three characteristics of an asset that must be established to determine periodic depreciation, depletion, or amortization.Of the following, what information is required to calculate depreciation allowances under straight-line depreciation? I. Useful life II. First cost III. Salvage value IV. Property class. a. I and II only. b. II and IV only. c. I, II, and III only d. I, II, III, and IV.
- We normally record a long-term asset at the a. Cost of the asset only.b. Cost of the asset plus all costs necessary to get the asset ready for use.c. Appraised value.d. Cost of the asset, but subsequently adjust it up or down to appraised value.Which of the following depreciation methods applies a uniform depreciation rate each period to an asset's book value?The depreciable amount is also called the _________________. Select one alternative: carrying amount depreciable asset historical amount depreciable base
- Which of the following disclosures must be included in the notes to the financial statements? the model numbers of each depreciable asset. the methods used in computing depreciation for each major class of depreciable asset. the rate of return on investment for each major class of depreciable asset. all of these choices.Depreciation records include all of the following information about fixed assets EXCEPT the a. economic benefit of purchasing the asset. b. cost of the asset. c. depreciation method being used. d. location of the asset.The book value of an asset is defined as ____________________. a. Estimated fair market value b. Cost –Accumulated depreciation c. Cost – salvage – accumulated depreciation d. Cost- Salvage value