Chapter 3
Long-Term Assets
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AS-6 (
3
)
What is the residual value of a long-term asset?
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AS-7 (
3
)
Name three different methods of calculating depreciation.
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AS-8 (
4
)
Does a company always receive the estimated salvage value of an asset on disposal?
Assuming the asset is fully depreciated, how is the difference between the estimated residual
value and the actual salvage value treated?
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AS-9 (
4
)
What does the net book value of a long-term asset represent? Does the net book value
represent the actual value of the asset?
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