Depreciation is a process of a. asset devaluation. b. cost accumulation. c. cost allocation. d. asset valuation. Recording depreciation each period is necessary in accordance with the a. going concern principle. b. cost principle. c. matching principle. d. asset valuation principle. In computing depreciation, salvage value is a. the fair market value of a plant asset on the dote of acquisition. b. subtracted from accumulated depreciation to determine the plant asset's depreciable cost. c. an estimate of a plant asset's value at the end of its useful life. d. ignored in all the depreciation methods. The method most commonly used to compute depletion is the a. straight-line method. b. double-declining-balance method. c. units-of-activity method. d. effective interest method. Identify the item below where the terms are not related. a. Equipment-depreciation b. Franchise-depreciation c. Copyright-amortization d. Oil well-depletion Goodwill can be recorded a. When customers keep returning because they are satisfied with the company's products. b. when the company acquires a good location for its business. c. when the company has exceptional management. d. only when there is an exchange transaction involving the purchase of an entire business