5) The condition of the asset when purchased is not taken into consideration when computing depreciation expense. a) True b) False 6) Which of the following methods of depreciation is most wid 6) Which of the following methods of depreciation is most widely used? a) declining balance b) straight line c) units of activity d) all of the above methods are equally popular Note: Use the following information to answer questions (7). (8) and (9): Cost: Salvage value: $5,000 $1,000 Estimated useful life: 4 years 2 (See next page) 7) Under the straight line method of depreciation, what is the depreciation expense in the first year? a) $ 250 b) $1,250 c) $1,500 d) $1,000 7) Under the straight line method of depreciation, what is the depreciation expense in the first year? a) $ 250 b) $1,250 c) $1,500 d) $1,000 8) Under the straight line method of depreciation, what is the depreciation expense in the second year? a) $ 250 b) $1,250 c) $1,500 d) $1,000 I 9) Under the straight line method of depreciation, what is the net book value at the end of the third year? a) $3,000 b) $2,500 c) $2,000 d) $1,250