Answered: Question-38 From what base amount is…

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

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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General Accounting mcq

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

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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
NO AI ANSWER
LO1 Depreciable cost is the difference between the original cost of the asset and its accumulated depreciation.
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
All amounts paid to acquire a long lived-asset and to get it ready for its intended use are referred to as OA. net book value OB. the cost of an asset OC salvage value O D. immediate expenses BEE