Whish of the following statements ahout capitaliing costs l cere Capitalizing costs refers to the process of eoverting aerts to expense Capitalizing costs results in an immediate decreas in net income. aCapitalizing a cost means to record it as an asset. DI Costs incurred to acquire an asset should pot be eapitalined. EA 14) Which of the following statements most appropriately describes the purpose of depreciatimglong-lived tangible asset? A) To record that the asser's market value declines over time. B) To show that the asset will eventually and eradually become obsolete. C) To match the cost of the asser to the period in which it generates revenue. D) To indicate how the asset has physically deteriorated. 15) Accumulated Depreciation: A) is a liability on the balance sheet. B) is a contra-stockholders' equity account. C) appears in the asset section of a balance sheet. D) appears on the income statement. 21ad 22 ofAp the pay 16) Which of the following statements is correct when the straight-line method is used to compute depreciation? A) The book value of an asset is an increasing amount during the asset's useful life. B) The carrying value of an asset is a constant amount during the asset's useful life. C) Accumulated depreciation is a constant amount during the asset's estimated useful life. D) Depreciation Expense is a constant amount each year. 7) The journal entry to record depreciation on equipment includes a: ) debit to Depreciation Expense and a credit to Cash. debit to Depreciation Expense and a credit to Accumulated Depreciation. debit to Accumulated Depreciation and a credit to Depreciation Expense. debit to Depreciation Expense and a credit to Equipment. Tebit to Accumulated Depreciation and a credit to Equipment. n September 1, Emil Rovey purchased a vehicle for $118,000 with a residual value of $3,000. The ted useful life is 8 years and the company uses the straight-line method. What is the depreciation ex year ended December 31? (Round your answer to the nearest whole dollar amount.) 17 22 -5