20 Book value is computed as a. current market value less residusl value. b. enst less residual value e. current market value less accumulated depreciation d. cost less accumulated depreciation. 21, ich of the following is considered under the straicht-line method but not under double- method? a. The asset's book value b. The asset's salvage value c. The asset's expected useful life d. The asset's initial cost 22 Depreciable cost is computed as: a cost less accumulased depreciation b. book value less residual value, c, cost less residual value d. market valuc less residual value 23,Which method of depreciation considers resdual value in computing the normal periodic depreciation? a. Straight-line b. MACRS c. Double-declining-balance d. Accelerated 24 A machine was purchased for 568,000. It has a useful life of 5 years and a residual value of $8,000 annual deprecistion expense using the straight-line method? a $20,000 b. S12,000 c. $60,000 d. $16,000 25 An equipment was purchased for $15,000. It has a uscful life of 5 years and a residual value of $4,000. Determine the depreciation expense for the first year using the double-declining-balance method? a. $5,400 b. S6,000 c. $2,200 d.$2,600 41 26. A fixed asset with a cost of $15,000 and accumulated depreciation of S12,500 is sold for $1,750. What is the amount o gain or loss on disposal of the fixed asset? a. $750 loss b. $2,500 loss c. $2,500 gain d, $750 gain 27. A fully depreciated asset must be a. removed from the books. b. kept on the books until sold or discarded. c. disclosed only in the notes to the financial statements. d, recognized on the income statement as a loss