red ft24431 Chris Diaz Attempt 1 Question 4 Mandatory 4 poin

red) ft:2:44:31 Chris Diaz: Attempt 1 Question 4 (Mandatory) (4 points) Which of the following is not necessary in calculating the depreciation expense for the first year for a newly purchased factory forklift? Market value of the forklift during its useful life Depreciation rate Estimated salvage value Total cost of the forklift at acquisition Estimated useful life Save

Solution

Answer

----In case of Straight Line Depreciation method, depreciation expense = (Total cost at acquisition – Estimated Salvage Value) / Estimated Useful Life.

---In case of diminishing balance method, depreciation expense = Total cost of acquisition x Depreciation Rate.

----All of the options are used to calculate Depreciation expense, except the first option which is MARKET VALUE.