ACCOUNTING CHAPTER 8

1. Which method of depreciation results in the most depreciation expense being taken over the asset's Inuseful life?

2. A machine cost $25,000 has a salvage value of $5,000 and a useful life of 4 years. The company uses the Straight-line method to calculate depreciation. If the machine is purchased on September 1, 2022. What is the depreciation expense for 2022? What is the depreciation expense 2023?

3. A machine cost $25,000 has a salvage value of $5,000 and a useful life of 4 years. The company uses the Double Declining method to calculate depreciation. If the machine is purchased on September 1, 2022. What is the depreciation expense for 2022? What is the depreciation expense 2023?

4. An ordinary repair keeps an asset in good operating condition and do not materially increase the useful life or productivity of an asset. These are called?

5. A betterment is an expenditure that increases the useful life or productivity of an asset and is known as a balance sheet expenditure. Of a company pays $10,000 for betterment of a machine, how is that recorded in the Journal?