Question-38 Question-38From what base amount is salvage value deductedwhen calculating depreciation?a) Market value of assetb) Historical cost of assetc) Replacement costd) Insurance value

Step 1: While calculating the depreciation, salvage value is deducted from the original cost of the…

Answered: Question-38 From what base amount is…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

Problem 2RQSC

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QUESTION 17 Match the term on the left to the appropriate description on the right. v Historical cost A. The amount of a PP&E asset's acquisition cost that will be depreciated over the asset's useful life v Depreciable cost B. An asset whose value derives from rights and privileges rather than physical existence v Salvage value v Accumulated depreciation C. The capitalized acquisition cost of an asset v Intangible asset v Amortization D. The process of allocating an intangible asset's acquisition cost to expense over its useful life E. The book value of a fully-depreciated PP&E asset F. The total amount of depreciation expense that has been recorded to-date for a PP&E 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
Question 10 Depreciation is: Oa. the loss in market value of an asset. Ob. the allocation of a long-term asset's cost to an expense account over the asset's life. OC. an increase in an asset's value over time or usage. d. none of the above. A Click Submit to complete this assessment.
Question on, "what is depreciation".. Simple. I have tried it but confused about which choice.
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.
Please give right answers to both questions
QUESTION 17 Which of the following is the most likely journal entry to record the amortisation of an intangbie asset. to Debit - Finance costs Credit - Intangible asset Debit - Intangble asset Credit - Administration costs Debit - Intangible asset Credit - Cash Debit - Cost of sales Credit - intangible anset
LO1 Depreciable cost is the difference between the original cost of the asset and its accumulated depreciation.
1 Select the best answer for the question. 11. What is the process by which the cost of a fixed asset over its estimated useful life is periodically charged to an expense a O A. Hypothecation B. Accretion C. Liquidation D. Depreciation O Mark for review (Will be highlighted on the review page) > O Hi Fu
32 Which of the following information is necessary to apply the straight-line method of depreciation for an asset? A. Initial cost, useful life of asset and residual value. B. Useful life of asset and residual value. C. Initial cost and useful life of an asset. D. Residual value and initial cost
Salvage value is: O Also called residual value Also called scrap value O An estimate of the asset's value at the end of its benefit period O A factor relevant to determining depreciation O All of the above
21- The book value of the asset sold is calculated as a. Book Value = Cost – Sale Value b. Book Value = Cost – Depreciation for the year c. Book Value = Cost – Accumulated Depreciation d. Book Value = Cost – Salvage Value

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Question-38 From what base amount is salvage value deducted when calculating depreciation? a) Market value of asset b) Historical cost of asset c) Replacement cost d) Insurance value