Which depreciation method provides you the highest depreciation expense in the first year? Why? Which method gives you the most depreciation over the life of the asset?
Think about the methods of depreciation you have learned about. What kind of assets do you think each method would be best suited for? Why?
What are the differences among valuation, depreciation, amortization, and depletion? Is it appropriate to calculate depreciation using two different methods? Why?
Differentiate between a revenue expenditure and a capital expenditure. Give an example of each.