Reference no: EM132953403

Problem 1: The residual value is not directly used for the calculation of depreciation expense under which method?

A) Units-of-activity method

B) Straight-line method

C) Interest capitalization method

D) Declining-balance method

Problem 2: Assets that produce their greatest benefits to a firm early in their useful life should be depreciated using the

A) straight-line method.

B) declining-balance method.

C) compound interest method.

D) units-of-activity method.

Problem 3: Maryam Co. purchased a machine on January 1, 2020 for $22,500. The machine had an estimated useful life of 10 years and an estimated residual value of $2,500. The company uses double-declining-balance depreciation. What will be the depreciation expense for 2020?

A) $4,500

B) $3,500

C) $2,250

D) $2,000