TIPLE CHOICE QUESTIONS (2 points each); Circle the letter of the most correct response A machine with an original cost of $120,000 and no salvage value had an estimated use years, but after 4 corneta varsit her scello years. Assuming the company uses straight-line depreciation, the amount of depreciation complete years, it was decided that the original estimate of useful life should have decided that the o salvage value had an estimated useful life of 6 expense in year 5 is: A) $20,000 B) $80,000 C) $10,000 D) $12,000 E) $5,000 me straight-line depreciation method and the double-declining balance depreciation method: A) Produce the same total depreciation over an asset's useful life. B) Produce the same depreciation expense each year. C) Produce the same book value each year. D) Are acceptable for tax purposes only. E) Are the only acceptable methods of depreciation for financial reporting The depreciation method that allocates an equal portion of the total depreciable cost for a plant asset to each unit produced is called: A) Accelerated depreciation. 8) Declining-balance depreciation. C) Straight-line depreciation. D) Units-of-production depreciation. E) Modified accelerated cost recovery system (MACRS) depreciation. To capitalize an expenditure is to: A) Debit an expense account. B) Credit an expense account. C) Credit the owner's capital account. D) Credit an asset account. E) Debit an asset account