All of the Following Are Needed for the Computation of Depreciation

question 165

Multiple Choice

All of the following are needed for the computation of depreciation except

• A)residual value.
• B)estimated useful life.
• C)cost.
• D)current market value.

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Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on current prices in active markets.

Noncash Asset

An asset that is not cash or does not directly translate into cash in a short period, such as property, plant, and equipment.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders, and has its own rights and obligations.

Treasury Stock

Shares that were once part of the outstanding shares but were bought back by the company, reducing the amount of stock on the open market.