Any depreciation method resulting in greater amounts of depreciation expense in

Question

Any depreciation method resulting in greater amounts of depreciation expense in the early years of a plan asset's life and lesser amounts in later years is: (choose best answer) a. Straight-line depreciation 1. Double declining balance depreciation c. Accelerated depreciation d. Units of production depreciation The carrying amount for an item in the accounting records, which, when applied to a plan asset, is the cost of the asset minus its accumulated depreciation, is the: (choose best answer) a. Book Value b. Asset Value c. Salvage Value d. Current Value e.) Accumulated Value 2.

Explanation / Answer

1. c. Accelerated depreciation , In this method ,book value of asset gets decreased in greater amount as compared to later years to minimise the taxable income

2. a. book value , Book value of assets is carrying value whichis to be shown in Balance sheet. Book value is calculated by deducting accumulated depreciation of asset from its cost

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