Reference no: EM132993676

Problem 1: Which of the following depreciation methods applies a uniform depreciation rate each period to an asset's carrying amount?

a) Units-of-production

b) Double-declining balance

c) Straight-line

d) Sum-of-the-years'-digits

Problem 2: An asset is being constructed for an entity's own use. The asset has been financed with a specific new borrowing. The interest cost incurred during the construction period is?

a) A part of the historical cost of acquiring the asset to be written off over the estimated useful life of the asset.

b) A prepaid asset to be written off over the estimated useful life of the asset.

c) A part of the cost of the asset to be written off over the term of the borrowing.

d) Interest expense in the construction period.