Start$-$up costs are accounted for as a$($n$)$:

A$)$ capitalized asset to be expensed over five years.

B$)$ indefinite$-$life intangible asset.

C$)$ expense in the period incurred.

D$)$ finite$-$life intangible asset.

The factors that need to be determined to compute depreciation are an asset's:

A$)$ Cost, residual value, and physical life.

B$)$ Cost, replacement value, and service life.

C$)$ Fair value, residual value, and economic life.

D$)$ Cost, residual value, and service life.

The allocation base for an asset is:

A$)$ its service life.

B$)$ the excess of its capitalized cost at the date placed in service and the asset's estimated

residual value.

C$)$ the difference between its replacement value and cost.

D$)$ the amount allowable under MACRS.

Depreciation, depletion, and amortization:

A$)$ all refer to the process of allocating the cost of long$-$term assets used in the busines

over future periods.

B$)$ all generally use the same methods of cost allocation.

C$)$ are all handled the same in arriving at taxable income.

D$)$ All of the other answer choices are correct.

Depreciation:

A$)$ Is always considered a period cost.

B$)$ Could be a product cost or a period cost depending on the use of the asset.

C$)$ Is usually based on the declining$-$balance method.

D$)$ Per books is usually higher than MACRS in the early years of an asset's life