Match Question and Question 7

Match the items Material expenditures which increase an asset's operating efficiency, productive capacity, or useful life Estimated useful life is expressed in terms of expected use Cost less accumulated depreciation An accelerated depreciation method used for financial statement purposes An accelerated depreciation method used for income tax purposes Results in an equal amount of depreciation each period 1. Long-lived assets 2. Units-of-production method 3. Depreciation 4. Diminishing-balance method 5. 6. Operating expenditures 7. Residual value 8. Carrying amount Expected cash value of the asset at the end of its useful Capital expenditures life Small expenditures which .Straight-line method primarily benefit the current period Capital cost allowance 10. expected use Cost less accumulated depreciation 1. Long-lived assets 2. Units-of-production method 3. Depreciation 4. Diminishing-balance method 5. 6. Operating expenditures 7. Residual value An accelerated depreciation method used for financial statement purposes An accelerated depreciation method used for income tax purposes Carrying amount Results in an equal amount of depreciation each period Expected cash value of the asset at the end of its useful 8. life Small expenditures which9. primarily benefit the current period Long-lived resources that are used in operations and are not intended for resale Capital expenditures Straight-line method 10. Capital cost allowance Process of allocating the cost of a depreciable asset over its useful life Question 7 (1 point) Pandora Pants Company acquires a delivery truck on April 6,2017, at a cost of $45,000. The truck is expected to have a residual value of $3,000 at the end of its four-year life. Pandora uses the nearest month method to pro-rate depreciation expense. Calculate annual depreciation expense for the second year using straight-line depreciation, assuming Pandora has a calendar year end Enter your answer as a whole number without commas or dollar signs. Your