The book value of an asset is equal to thea. asset"s cost less accumulated depreciation. b. asset"s fair value less its historical cost.c. blue book value relied on by secondary markets.d. replacement cost of the asset.

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Which of the following methods will result in the highest depreciation in the first year? a. Time valuation. b. Declining-balance. c. Sum-of-year"s-digits. d. Straight-line.
Equipment with a cost of \$316000 has an estimated salvage value of \$16000 and an estimated life of 4 years or 10000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 2000 hours?a. \$75000. b. \$79000. c. \$60000. d. \$76500.
Sandhill Co. bought a machine on January 1, 2017. The machine cost \$178000 and had an expected salvage value of \$30000. The life of the machine was estimated to be 4 years. The company uses the straight-line method of depreciation. The book value of the machine at the beginning of the third year would bea. \$104000. b. \$178000. c. \$148000. d. \$74000.
a. \$104000.(\$178000 - \$30000) ÷ 4 = \$37000; \$178000 - (\$37000 × 2) = \$104000((Cost - sal. val.) ÷ 4 yrs.) = ann. dep.; (Cost - (ann. dep. × 2))
In computing depreciation, salvage value isa. an estimate of a plant asset"s value at the end of its useful life. b. the fair value of a plant asset on the date of acquisition. c. ignored in all the depreciation methods. d. subtracted from accumulated depreciation to determine the plant asset"s depreciable cost.
Which of the following methods of computing depreciation is production based? a. Straight-line. b. Declining-balance. c. Units-of-activity. d. None of these answer choices are correct.
A machine that was purchased on January 1 for \$54000 has an estimated salvage value of \$12000. If the machine"s depreciation rate is 20%, its annual depreciation is a. \$8400. b. \$13200. c. \$10800.d. \$43200.
When an asset is sold, a gain occurs when the a. sale price exceeds the depreciable cost of the asset sold. b. sale price exceeds the original cost of the asset sold. c. book value exceeds the sale price of the asset sold. d. sale price exceeds the book value of the asset sold.
The declining-balance method of depreciation produces a(n)a. increasing depreciation expense each period. b. declining percentage rate each period. c. decreasing depreciation expense each period. d. constant amount of depreciation expense each period.

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Blossom Company purchased equipment on January 1, 2016, at a total invoice cost of \$1300000. The equipment has an estimated salvage value of \$30000 and an estimated useful life of 5 years. What is the amount of accumulated depreciation at December 31, 2017, if the straight-line method of depreciation is used?a. \$508000. b. \$260000. c. \$520000.d. \$254000.   