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Question 2Question text(T / F) The formula for calculating straight-line depreciation is: Depreciation per period = (Asset cost – estimated salvage value) / Number of accounting periods (estimated useful life).Select one:True False FeedbackCorrect.The correct answer is 'True'.Question 3Question text(T / F) Units-of-production method: Assigns an equal amount of depreciation to each unit of product manufactured by an asset.Question 4Question text(T / F) Double-declining-balance method is an accelerated deprecation method. Salvage value is ignored in making annual calculations (save for the final depreciation period).
Question 5Question text(T / F) The formula for DDB deprecation is: Deprecation per period = (2×straight-line rate)×(Asset cost – Accumulated deprecation.)Question 6Question text(T / F) Expenditures that increase the quality of services or extend the quantity of services beyond the original estimate are capital expenditures.Select one:True False FeedbackCorrect.The correct answer is 'True'.Question 7Question text(T / F) In calculating depletion, the residual value of acquired land containing an ore deposit is included in total costs subject to depletion.
Question 8Question text(T / F) All recorded intangible assets are subject to amortization.Question 9Question text(T / F) By comparing an asset's book value (cost less up-to-date accumulated depreciation) with its sales price, the company may show either a gain or a loss.Correct.Question 10(T / F) If an asset's sales price is greater than book value, the company shows a gain. If sales price is less than book value, the company shows a loss. If sales price equals book value, no gain or loss results.Select one:True False Correct.The correct answer is 'True'.On 2015 January 1, Jackson Company purchased equipment for $400,000, and installation and testing costs totalled $40,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $40,000. If Jackson uses the straight-line depreciation method, the depreciation expense for 2015 is: