Depreciation Expense - DDB Method On July 01, 2020, Phil Roth purchased a machine for his business. The maqchine costs $85,000; the estimated residual value is $8,500 and the estimated life is six years. The depreciation deduction for 2020 using the DDB method is ? $7,084 $14,167 $21,220 $11,450 A contingent liability is a potential, rather than an actual liability, because it depends on a future event. True o False nditure that increases the capacity or efficiency of a plant asset or that extends the asset's life is known as a revenue expenditure. True False A company has been sued for product failures allegedly resulting in injuries to the individuals bringing the lawsuit. The company's lawyers believe it is more than remote, but less than probable, that the lawsuit will result in an actual liability. Which of the following actions should be taken by the company's management? The situation should be described in a note to the financial statements. The possible liability should be ignored. o Management should consider resigning. The liability should be estimated and recorded as an expense