Use of the sum-of-the-years'-digits method
A) results in salvage value being ignored.
B) means the denominator is the years remaining at the beginning of the year.
C) means the book value should not be reduced below salvage value.
D) all of these answers are correct.

Question

Quizplus · Accepted Answer

The sum-of-the-years'-digits method is a form of accelerated depreciation that ensures the book value does not fall below the salvage value by the end of the asset's useful life.

Use of the Sum-Of-The-Years'-Digits Method