A depreciable asset has an estimated 15% salvage value. Under which of the following methods,
properly applied?

Question

would the accumulated depreciation equal the original cost at the end of the asset's

estimated useful life?

Double-

Straight-line declining balance

a. Yes Yes

b. Yes No

c. No Yes

d. No No

mohamed Hakim CMA CPA Candidate · Answer

the accumulated depreciation will not equal original cost at the end of the asset's

estimated useful life

because of Salvage Value :

is subtracted from the cost of a fixed asset to determine the amount of the asset cost that will be depreciated