A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Which depreciation method is most frequently used in businesses today?

Best Answers

After 5 years of use, the estimated salvage value is revised to $24,000 but the estimated useful life is unchanged. Assuming straight-line depreciation, depreciation expense in year 6 would be 17. Additions and improvements a. occur frequently during the ownership of a plant asset. read more

b. that no change be made in the periodic depreciation so that depreciation amounts are comparable over the life of the asset. c. that income for the current year be increased. d. that the amount of periodic depreciation be changed in the current year and in future years. read more

If the actual number of machine hours ran in 2003 was 4,000 hours and the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2003 would be: $2,000. On January 1, a machine with a useful life of five years and a residual value of $3,000 was purchased for $15,000. read more