3. A company uses the lower-of-cost-or-market rule for its ending inventory. In a period with a general trend of rising inventory prices, the company will least likely apply the market value to its ending inventory if the company uses which of the following cost flow assumptions? A. Average cost B. FIFO. C. LIFO D. Specific identification. Which of the following expenses is an example of matching expense under the immediate 4. recognition principle? A. Bad debt expense, estimated using the percentage of sales approach. B. Cost of goods sold. C. Depreciation expense, using the straight-line depreciation method. D. Research and development expense. Depreciable costs are expensed in the periods of use rather than at the time when the asset is 5. acquired. Which of the following justifies above practice? A. Conservatism. B. Historical cost C. Matching. D. Revenue Realization. On January 1, 2004, AAA Co. acquired a machine at $41,000. The machine's service life wa estimated to be ten years with a residual value $1,000. The straight-line depreciation methos 6. used. On January 1, 2009, the machine's residual value was re-estimated at S0 with a remai life of three years. How much should the company record for its depreciation expense for A. $4,000. B. $5,000. C. $5,062.50. D. $7,000