Rebe is looking over two sets of calculations done by a new employee. Set A presents the original cost of a vehicle to be $60,000 and the depreciable cost to be $30,000. Set B presents the depreciable cost of a machine to be $100,000 and the original cost of the machine to be $80,000. Are these calculations correct? O No, Set A is incorrect as the depreciable cost cannot possibly be lower than the original cost of the asset. O Yes, both Set A and Set B are likely correct, but to know for sure the salvage value of the assets would also need to be known. O Yes, both Set A and Set B are likely correct, but to know for sure the estimated useful life would also need to be known. O No, Set B is incorrect as the depreciable cost cannot possibly be higher than the original cost of the asset.

Rebe is looking over two sets of calculations done by a new employee. Set A presents the original cost of a vehicle to be $60,000 and the depreciable cost to be $30,000. Set B presents the depreciable cost of a machine to be $100,000 and the original cost of the machine to be $80,000. Are these calculations correct? O No, Set A is incorrect as the depreciable cost cannot possibly be lower than the original cost of the asset. O Yes, both Set A and Set B are likely correct, but to know for sure the salvage value of the assets would also need to be known. O Yes, both Set A and Set B are likely correct, but to know for sure the estimated useful life would also need to be known. O No, Set B is incorrect as the depreciable cost cannot possibly be higher than the original cost of the asset.

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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