Marv and Patty are estimating depreciation on some company assets. Marv estimates the depreciation on a company delivery truck to be $2,000. Patty estimates the depreciation of their new machine to be $3,100. After some time, they both recognize the depreciation of a new piece of land to be $2,500. What is wrong with these calculations? The machine calculation is likely correct, but the truck and land calculations are probably incorrect as they should not be so close in value. O The truck and land calculations are likely correct, but the machine depreciation should not be higher than the other two. O The truck and machine calculations are likely fine, but the plot of land calculation is incorrect as depreciation does not apply to land. O The land and truck calculations are likely fine, but the machine calculation is incorrect as depreciation does not apply to machines.

Marv and Patty are estimating depreciation on some company assets. Marv estimates the depreciation on a company delivery truck to be $2,000. Patty estimates the depreciation of their new machine to be $3,100. After some time, they both recognize the depreciation of a new piece of land to be $2,500. What is wrong with these calculations? The machine calculation is likely correct, but the truck and land calculations are probably incorrect as they should not be so close in value. O The truck and land calculations are likely correct, but the machine depreciation should not be higher than the other two. O The truck and machine calculations are likely fine, but the plot of land calculation is incorrect as depreciation does not apply to land. O The land and truck calculations are likely fine, but the machine calculation is incorrect as depreciation does not apply to machines.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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