Question

4) Double-declining-balance depreciation: A) is an accelerated depreciation method. B) ignores the residual value in computing depreciation, except during the last year. C) is based on the book value of the plant asset. D) is all of the above.

5) All of the following are needed to measure depreciation, EXCEPT for: A) cost. B) market value. C) estimated useful life. D) estimated residual value.

6) A depreciation method in which an equal amount of depreciation expense is assigned to each year of the asset's use is the: A) units-of-production method. B) straight-line method. C) accelerated depreciation method. D) estimated residual value method.

Answer 1

4)Correct Answer:

Option(D) or all given statements are correct is the answer because under the Double-declining-balance depreciation because it has more depreciation expenses as compared to other methods of depreciation.It is not taking the residual value while calculating the depreciation it considers at end year depreciation is calculated by taking the difference of last year balance and salvage value.Under this method depreciation is calculated on balance amount of depreciation or book value of assets

.Incorrect Answers:

Option(A) is incorrect answer that is Double-declining-balance depreciation is an accelerated depreciation method because this is not only the correct statement but also there're are other statement such as it ignores the residual value in computing depreciation, except during the last year and it is based on the book value of the plant asset.

Option(B) is incorrect answer that is Double-declining-balance depreciation is ignores the residual value in computing depreciation, except during the last year is not only the single statement is true but there are other statements such as It an accelerated depreciation method and it is based on the book value of the plant asset.

Option(C) is incorrect answer that is Double-declining-balance depreciation is based on the book value of the plant asset is not only the single  statement is true but there're are other statements such as it is accelerated depreciation method and it ignores the residual value in computing depreciation, except during the last year and it is based on the book value of the plant asset.

So correct Answer is option(D)

5) Depreciation is calculated by taking cost ,estimated residual value and estimated useful life. but market values is not considered while calculating the annual depreciation

Depreciation P.A.. = (Cost of Assets - Estimated residual value)/Estimated useful life

So , Market Value is not considered

So correct answer is option(B) or Market Value

6)Correct Answer:

Option(B) or Straight Line Method of Depreciation is correct answer because the amount of depreciation is equal or same is every year.

Incorrect Answers:

Option(A) or Unit of Production method is incorrect answer because the depreciation is not equal or same means as units changes then the amount of depreciation also get change.

Option(C) or accelerated depreciation method is incorrect answer because the depreciation is not same means this method charges more depreciation in initial years as compared to future years.

Option(D) or estimated residual value method is incorrect answer because the depreciation is not same means it used to find the salvage value of assets.

So Correct Answer is option(B) or Straight Line Method of Depreciation