The depreciable cost of a long-term asset is the difference between the amount paid for the asset and its salvage value.
Answer the following statement true (T) or false (F)
True
The depreciable cost is the total amount of an asset's cost that will be depreciated over its useful life.
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If a company is considering the purchase of a parcel of land that was acquired by the seller for $85,000, is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by the purchaser as easily being worth $140,000, and is purchased for $137,000, the land should be recorded in the purchaser's books at:
A. $137,000. B. $150,000. C. $95,000. D. $140,000. E. $138,500.
Angela's company is trying to determine whether to enter a new market segment. How might her company use Porter's Model to make a decision?
What will be an ideal response?
Most businesses in the United States are
A) sole proprietorships B) partnerships C) corporations D) separate entities
A chart of accounts for a merchandising business
A) usually is the same as the chart of accounts for a service business B) usually requires more accounts than does the chart of accounts for a service business C) usually is standardized by the FASB for all merchandising businesses D) always uses a three-digit numbering system