Depreciation commences or continues when

a$.$ The asset has been paid for.

b$.$ The asset is available for use.

c$.$ The asset's fair value can be recovered.

$x($d$)$ The asset is taken out of service.

Depreciation method that will most likely provide the lowest net income in year $1$:

a$)$ units of production.

b$)$ straight$-$line.

c$)$ CCA.

d$)$ double$-$declining$-$balance.

Depreciation method that will most likely provide the lowest asset book value at end of year $1$:

a$)$ units of production.

b$)$ straight$-$line.

c$)$ CCA.

d$)$ double$-$declining$-$balance.

If a company uses the units of production method for calculating depreciation on its factory machinery, the credit to accumulated depreciation from period to period during the life of the firm will

a$)$ be constant.

b$)$ vary with sales revenue.

c$)$ vary with unit sales.

d$)$ vary with production.

Depletion expense

$($a$)$ is usually part of cost of goods sold.

b$)$ includes tangible equipment costs in the depletion base. $A$

c$)$ excludes intangible development costs from the depletion base.

d$)$ excludes restoration costs from the depletion base.

Deciding which PPE components to depreciate separately is called

a$)$ separate depreciation.

b$)$ componentization.

c$)$ group depreciation.

d$)$ individual asset depreciation.

Which of the following is INCORRECT regarding depreciation?

a$)$ It is not a matter of valuation.

b$)$ It is part of the matching of revenues and expenses.

c$)$ It is a means of cost allocation.

d$)$ It is an attempt to reflect the fair market values of the related assets.

Factors to consider in the depreciation process do NOT include

a$)$ the asset's depreciable amount.

b$)$ the period over which to depreciate the asset.

c$)$ the asset's fair market value.

d$)$ which asset components should be depreciated separately.