D is corrent. The requirement is to identify the method or methods of depreciation that would result in the accumulated depreciation to be equal to the original cost at the end of the asset’s estimated useful life. Straight-line depreciation uses the estimated salvage value to compute depreciation, resulting in the asset being depreciated until book value equals the estimated salvage value. Although double-declining balance does not use salvage value in its formula, the asset is depreciated only to the point at which the book value equals the salvage value. Therefore, the correct answer is that accumulated depreciation will not equal the asset’s cost at the end of the asset’s life under either the straight-line or double-declining balance method.
A is incorrect. The requirement is to identify the method or methods of depreciation that would result in the accumulated depreciation to be equal to the original cost at the end of the asset’s estimated useful life. Straight-line depreciation uses the estimated salvage value to compute depreciation, resulting in the asset being depreciated until book value equals the estimated salvage value. Although double-declining balance does not use salvage value in its formula, the asset is depreciated only to the point at which the book value equals the salvage value. Therefore, the correct answer is that accumulated depreciation will not equal the asset’s cost at the end of the asset’s life under either the straight-line or double-declining balance method.
A is incorrect. The requirement is to identify the method or methods of depreciation that would result in the accumulated depreciation to be equal to the original cost at the end of the asset’s estimated useful life. Straight-line depreciation uses the estimated salvage value to compute depreciation, resulting in the asset being depreciated until book value equals the estimated salvage value. Although double-declining balance does not use salvage value in its formula, the asset is depreciated only to the point at which the book value equals the salvage value. Therefore, the correct answer is that accumulated depreciation will not equal the asset’s cost at the end of the asset’s life under either the straight-line or double-declining balance method.
A is incorrect. The requirement is to identify the method or methods of depreciation that would result in the accumulated depreciation to be equal to the original cost at the end of the asset’s estimated useful life. Straight-line depreciation uses the estimated salvage value to compute depreciation, resulting in the asset being depreciated until book value equals the estimated salvage value. Although double-declining balance does not use salvage value in its formula, the asset is depreciated only to the point at which the book value equals the salvage value. Therefore, the correct answer is that accumulated depreciation will not equal the asset’s cost at the end of the asset’s life under either the straight-line or double-declining balance method.
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