Depreciation: A. Measures the decline in market value of an asset. B. Measures physical deterioration of an asset. C. Is the process of allocating to expense the cost of a plant as D. Is an outflow of cash from the use of a plant asset. E. Is applied to land. 3. Nelson Company purchased equipment on July 1 for $27, 50 equipment on the straight-line method over its useful life of equipment's salvage value is $3, 500, the amount of monthly d recognize is: A. $2, 400 B. 200 C. $4, 800 D. 400 E. 450 Many companies use an accelerated depreciation method A. It is required by the tax code. B. It is required by financial reporting rules. C. It yields larger depreciation expense in the early years of a D. It yields a higher income in the early years of the asset's E. The results are identical to straight 5. The formula for computing annual straight-line depreciate A. Depreciable cost divided by useful life in units