Question
Which of the following statements is true when the straight-line method is used to compute depreciation...
Which of the following statements is true when the straight-line method is used to compute depreciation expense?
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Homework Answers
Answer #1
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Activity: Straight-line Depreciation Equipment acquired at the beginning of the year at a cost of $125,000...
Activity: Straight-line Depreciation
Equipment acquired at the beginning of the year at a cost of
$125,000 has an estimate residual value of $5,000 and an estimated
useful life of 10 years.
Determine the:
•Depreciable cost
•Annual straight-line depreciation
•Document the depreciation expense for the 10 years
Formula
Dollar Values
Answer
Year
Depreciation Expense
1
2
3
4
5
6
7
8
9
10
Total
Activity: Units-of-Output
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Select one:
A. Depreciation does not take salvage value into
consideration
B. Depreciation is recognized evenly over the estimated useful
life of the asset
C. Purchase cost is expensed in the year of acquisition
D. Depreciation is equal to the proceeds received on sale less
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Depreciation Accumulated Year Cost Expense Depreciation Book Value
1 __________ ______________ _______________ ___________ 2
__________ ______________ _______________ ___________ 3 __________
______________ _______________ ___________ 4 __________
______________ _______________ ___________ 5 __________
______________ _______________ ___________ 6 __________
______________ _______________ ___________
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Estimated
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End of
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Cost of Honda
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Depreciation
expense for the year
Accumulated
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Book value at
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1
$
$
$
$
2
$
$
$
$
3
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$
4
$
$
$
$
5
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. Straight-line depreciation method: A unit of equipment is
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QUESTION 1
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affects both the numerator and denominator
no effect
increases the outcome
decreases the outcome
QUESTION 2
Which one of the following statements is true?
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The...
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Very Fast Rating! Thumbs Up fast! Chapter 9 - Practice Problems Problem #1 Straight Line Depreciation...
Very Fast Rating! Thumbs Up fast!
Chapter 9 - Practice
Problems
Problem #1
Straight Line Depreciation
Method:
On January 3, ABC Company purchased
equipment for $325,000. The equipment has an estimated useful life
of 15 years and a residual value of $12,500.
Determine the depreciable cost
Prepare the journal entry to record the depreciation at year
end.
Problem #2
Units of Output Depreciation Method
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