What depreciation rate (percentage) would be used for a 6-year asset when the double-declining balance method is used?
a. 33.33%
b. 16.67%
c. 8.33%
d. 25.00%
2. Which of the following terms reflects the amount of the asset’s value that is excluded from depreciation?
a. Salvage Value
b. Historical Cost
c. Accumulated Depreciation
d. Depreciable Cost
3. Which of the following methods may require an adjustment to ensure that the total depreciation doesn’t exceed the total cost, even when the asset is used for as long as expected?
a. Double Declining Balance
b. Straight Line Depreciation
c. Units of Production Depreciation
d. None of the Above
4. Calculate the depreciation expense for year 2 of a 10-year asset’s life. The asset cost $100,000 and the salvage value was $15,000.
a. $8,500
b. $10,000
c. $17,000
d. $4,250