Discuss your answer by affirming or denying what was stated in each of your answers.

1. 1.

   Depreciation Expense shown on a company's income statement must be the same amount as the depreciation expense on the company's income tax return.

   True

    

   False

2. 2.

   The purpose of depreciation is to have the balance sheet report the current value of an asset.

   True

    

   False

3. 3.

   Depreciation Expense reflects an allocation of an asset's original cost rather than an allocation based on the economic value that is being consumed.

   True

    

   False

4. 4.

   An asset's useful life is the same as its physical life?

   True

    

   False

5. 5.

   One company might depreciate a new computer over three years while another company might depreciate the same model computer over five years...and both companies are right.

   True

    

   False

Answer rating: 100% (QA)

1 False this is because the amount on the income statement should be on basis of the accountants mat... View the full answer