Depreciation may need to be taken for a partial year in the year of disposition only in any year in which the asset is not used for the entire year the year of acquisition only the year of acquisition and the year of disposition Which of the following is correct? Answer cannot be determined from the information given. Straight-line depreciation yields varying depreciation expense each year, declining balance yields increasing depreciation expense each year, and units of activity yields the same amount of depreciation expense each year. Straight-line depreciation yields the same amount of depreciation expense each year, declining balance yields varying depreciation expense each year, and units of activity yields decreasing depreciation expense each year. Straight-line depreciation yields the same amount of depreciation expense each year, declining balance yields decreasing depreciation expense each year, and units of activity yields varying depreciation expense each year. The maximum depreciation over the life of an asset is equal to the depreciable basis. True False In order to compute annual depreciation expense, you must know which of the following (select all that apply) Deprecation method Estimated useful life Estimated salvage value Cost Routine maintenance to an asset should be capitalized whereas major improvements should be expensed. True False Depreciation represents the: cash saved to purchase new assets O the decreases to the asset's fair market value during the period the allocation of part of the cost of the asset to the revenues generated during the period all of the above Depreciation results in the accumulation of cash to purchase replacement property. True False The sale of an asset at a gain occurs when O none of the above the selling price is greater than the book value of the asset the selling price is greater than the estimated salvage value the selling price is greater than the cost of the asset