please help with accounting

1 question with 5 parts

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Which of the following statements is not true regarding depreciation? Depreciation sets aside cash to purchase a new asset in the future. Accumulated depreciation is subtracted from the original asset's cost to arrive at book value. Depreciation uses estimates such as useful life and salvage value. Depreciation is the process of allocating the cost of a long-term fixed asset to expense over its useful life. On January 1, Year 1, Event Cakes Inc. purchased a $400,000 building. The building has a salvage value of $5,000 and an estimated useful life of 8 years. Event Cakes Inc. uses the straight-line method to calculate the depreciation. What is the ending balance in accumulated depreciation at the end of Year 2 ? $350,625 $98,750 $49,375 $400,000 On January 1, Year 1, Rachel's Boutique Co. purchased a $600,000 building. The building has a salvage value of $15,000 and an estimated useful life of 10 years. Assume Rachel's Boutique uses the double-declining balance method. What is the book value at the end of Year 1 ? $96,000 $120,000 $213,600 $480,000 International Jets Co. purchased a new jet on January 1 , Year 1 for $5,000,000. International Jets estimates that the new jet will have a useful life of 1,100,000 miles and a salvage value of $50,000. During Year 1 , the jet flew 60,000 miles. What is the amount of depreciation expense for Year 1 under the units-of-production method? Do not round intermediate calculations. $60,000 $270,000 $450,000 $454,545 To record $14,000 of depreciation expense for the periord, what is included in the journal entry? Credit Cash \$14,000 Debit Accumulated Depreciation \$14,000 Credit Accumulated Depreciation \$14,000 Credit Depreciation Expense $14,000