1.Equipment costing $40,000 with a salvage value of $8,000 and an estimated life of 8 years has been depreciated using the straight-line method for 2 years. Assuming a revised estimated total life of 5 years and no change in the salvage value, the depreciation expense for year 3 would be (Points : 2) $4,800.
an equal and equitable manner.
an accelerated and accurate manner.
a systematic and rational manner.
a conservative market-based manner.
a gain on disposal will be recorded.
phantom depreciation must be taken as though the asset were still on the books.
a loss on disposal will be recorded.
no gain or loss on disposal will be recorded.
Excavation fees are capitalized but building permit fees are not.
Architect fees are capitalized but building permit fees are not.
Interest is capitalized during the construction as part of the cost of the building.
The capitalized cost is equal to the contract price to build the plant less any interest on borrowed funds.