27) Which of the following is NOT a condition that must be satisfied
before interest capitalization can begin on a qualifying asset?
28) Which of the following most accurately reflects the concept of
depreciation as used in accounting?
29) Which of the following principles best describes the conceptual
rationale for the methods of matching depreciation expense with
revenues?
30) The major difference between the service life of an asset and its
physical life is that
31) Starr Company purchased a depreciable asset for $150,000. The
estimated salvage value is $10,000, and the estimated useful life is 8
years. The double-declining balance method will be used for
depreciation. What is the depreciation expense for the second year on
this asset?
32) Bigbie Company purchased a depreciable asset for $600,000. The
estimated salvage value is $30,000, and the estimated useful life is
10,000 hours. Bigbie used the asset for 1,100 hours in the current
year. The activity method will be used for depreciation. What is the
depreciation expense on this asset?
33) Harrison Company purchased a depreciable asset for $100,000.
The estimated salvage value is $10,000, and the estimated useful life
is 10 years. The straight-line method will be used for deprecia