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A depreciable asset has an estimated 15% salvage value. Under which of the following methods, properly applied?

would the accumulated depreciation equal the original cost at the end of the asset's

estimated useful life?

               Double-

Straight-line             declining balance

            a.        Yes                             Yes

             b.       Yes                              No

           c.       No                                Yes

            d.        No                                No

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Question added by Deleted user
Date Posted: 2015/08/31
mohamed Hakim CMA CPA Candidate
by mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia

 the accumulated depreciation  will not equal  original cost at the end of the asset's

estimated useful life

because of Salvage Value :

is subtracted from the cost of a fixed asset to determine the amount of the asset cost that will be depreciated

 

so answer will be :   no , no

 

 

 

zakaria Mbarki
by zakaria Mbarki , Sr Customer Service and Sales Specialist , Tad-beer

A depreciable asset has an estimated 15% salvage value. Under which of the following methods, properly applied?

 the answer is D

Belal Abdelhamid
by Belal Abdelhamid , Finance Manager , Retaj Global Hotel & Resorts

Answer is  D both (Straight-line & declining balance) No

HRISHIKESH SINGH
by HRISHIKESH SINGH , DEPUTY MANAGER (HR) , TANTIA CONSTRUCTIONS LIMITED

DECLINING BALANCE, ON THE BASIS OF YES NO.

 

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