If the statement is true, write T in the space provided. If the statement is false, write F in the space provided.
1. The depreciation rate for the double-declining-balance method is twice the straight-line rate.
2. Under the MACRS depreciation method, office furniture is included in the 7-year class of assets.
3. When the MACRS method is used, any salvage value is disregarded.
4. When the straight-line method is used, the salvage value is disregarded.
5. Under the double-declining-balance method, the salvage value is ignored
in the calculations; however, the asset is not depreciated below the salvage value.
6. Under all methods except MACRS, an asset purchased in any month other than January has first-year and last-year depreciation amounts that are prorated from the month the asset was purchased.
7. Under MACRS, all assets are assumed to have been placed into service on January 1, regardless of when they were actually purchased.
8. The computer can generate the depreciation adjusting entries from the fixed assets information.
9. Depreciation adjusting entries do not need to be posted.