When Depreciation Is Computed for Partial Periods Under a Decreasing

question 140

Multiple Choice

When depreciation is computed for partial periods under a decreasing charge depreciation method, it is necessary to

• A) charge a full year's depreciation to the year of acquisition.
• B) determine depreciation expense for the full year and then prorate the expense between the two periods involved.
• C) use the straight-line method for the year in which the asset is sold or otherwise disposed of.
• D) use a salvage value equal to the first year's partial depreciation charge.

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Definitions:

Real World

The physical and social environment in which individuals live and interact, outside of artificial or virtual contexts.

Correlation Coefficients

Statistical measures that indicate the extent to which two or more variables fluctuate together.

Cause and Effect

The principle that every event (effect) has one or more causes; this relationship explains why things happen and allows for prediction and intervention.

Strong

Having the power to move heavy weights or perform other physically demanding tasks; also can apply to the capacity for endurance or mental capacity.