References Mailings Review View Tell me E 21 T AaBbceDdE AaBb CcDdE Aav A. DA AaB Code AaBbCcDc ABCD di Emphasis Heading 1 Heading 2 Medium Ord Normal 17. T F A loss on sale of equipment for $2,000 is debited when a company sells equipment with a net book value of $45,000 for $43,000. 18. T F Double-declining balance method is an example of an accelerated depreciation method. 19. T F Accelerated depreciation violates the matching principle. 20. T F The double-declining balance method lends to higher depreciation in the early years of an asset's life. 21. T F A company buys equipment with a ten-year life. After two years, the equipment is sold. If the company uses double-declining balance depreciation method, it is more likely to report a higher amount of gain on the sale than if it uses straight-line depreciation method. 22. T F The units-of-production method violates the matching principle. 23. T F It is unlikely that a company will guess exactly the number of units a machine can produce when it is using the units-of-production method. 24. T F Wasting assets are reduced through depletion. 25. T F Exchanges of assets are always recorded at the book value of the asset received. 26. T F An expenditure, which increases the productivity of an asset, should be debited to that asset account 27. T F The cost of land is not depreciated. 28. T F Land improvements are not depreciated because land is not depreciated. 29. T F Interest is expensed no matter whether the asset it relates to is being purchased or built. 30. T Interest on a constructed asset is capitalized to the asset account until revenues are generated and depreciated with the rest of the asset. F