How does replacement cost depreciation differ fromhistorical cost methods?a) Uses longer life estimatesb) Based on current asset valuesc) Requires straight-line methodDIgnores salvage value

Option a: This option is incorrect because the asset's useful life is determined independently of…

Answered: How does replacement cost depreciation…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter5: Adjusting Entries And The Work Sheet

Section: Chapter Questions

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how does replacement cost depreciation differ from historical cost methods?
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Why is depreciation expense recognized? Select one: a. To provide a better estimate of the market value of the depreciated assets. b. So that the balance sheet value of plant assets will more accurately reflect the replacement cost of the assets. c. To ensure that cash will be available at the end of the assets' useful life in order to replace it. d. To match the cost of the asset against the revenue using a reasonable allocation. method. Save AnswersNext
A) What is residual value? Support your answer with an example ( word count 100) B) In practise, would you expect the depreciation expense for a non-current asset to be overestimated or underestimated? Explain why this is the case.
Which of the following is not a factor in computing depreciation for a period? present value residual value method of cost allocation service life
Which of the following depreciation methods most closely approximates the method used to deplete the cost of natural resource? a. Straight-line method b. Double-declining-balance method c. Either the cost model or the revaluation model d. The recoverable amount model
Explain the differences between cost depletion, asset depreciation, and amortization. Explain the Modified Accelerated Cost Recovery System (MACRS).
Is residual value deductible when using accelerated method of depreciation>
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 depreciation
what is Intangible Asset ? what is Wasting Assets ? what is Asset Cost ? what is Residual Value? and what are : e) Depreciation Base f) Book Value g) Historical Cost ? and also what is Basket Purchase of Non- Current Operating Assets.?
What is a relevant cost? Explain why depreciation on an existing asset is always irrelevant.

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How does replacement cost depreciation differ from historical cost methods? a) Uses longer life estimates b) Based on current asset values c) Requires straight-line method DIgnores salvage value