True false 20 macrs modified accelerated cost

This preview shows 4 out of 9 pages.

True False 20. MACRS (modified accelerated cost recovery system) depreciation is equivalent to sum-of-the- years' digits depreciation. True False 21. By the replacement depreciation method, depreciation is recorded when assets are replaced. True False 22. The factors that need to be determined to compute depreciation are an asset's: A. Cost, residual value, and physical life. B. Cost, replacement value, and service life. C. Fair value, residual value, and economic life. D. Cost, residual value, and service life.
Image of page 4

Subscribe to view the full document.

23. The depreciable base for an asset is: 24. Depreciation, depletion, and amortization: future periods. 25. Gains on the cash sales of fixed assets:
Image of page 5
26. The overriding principle for all depreciation methods is that the method must be: A. Conservative and economic. B. Systematic and rational. C. Consistent and conservative. D. Significant and material. 27. Depreciation: 28. Assuming an asset is used evenly over a four-year service life, which method of depreciation will always result in the largest amount of depreciation in the first year?
Image of page 6

Subscribe to view the full document.

29. In the first year of an asset's life, which of the following methods has the smallest depreciation? 30. An asset acquired January 1, 2013, for $15,000 with an estimated 10-year life and no residual value is being depreciated in an equipment group asset account that has an average service life of eight years. The asset is sold on December 31, 2014, for $6,000. The entry to record the sale would be: A. B. C. D. Cutter Enterprises purchased equipment for $72,000 on January 1, 2013. The equipment is expected to have a five-year life and a residual value of $6,000.
Image of page 7
Image of page 8

Subscribe to view the full document.

Image of page 9
You've reached the end of this preview.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern