Which of the following amortization methods calculates annual amortization expense based on an asset's cost minus its residual value?
A)Deferred amortization
B)Straight-line
C)Capital cost allowance
D)Declining-balance

Question

Quizplus · Accepted Answer

The straight-line method calculates annual amortization expense based on an asset's cost minus its residual value, divided by its useful life. This results in a consistent amount of amortization expense each year.

Which of the Following Amortization Methods Calculates Annual Amortization Expense