Which of the following statements is true when the straight-line method is used to compute depreciation?
A) The carrying value of an asset is a constant amount during the asset's useful life.
B) Accumulated depreciation is a constant amount during the asset's estimated useful life.
C) Depreciation expense per period is the depreciable cost divided by the number of periods in the asset's useful life.
D) The book value of an asset is an increasing amount during the asset's useful life.

Question

Quizplus · Accepted Answer

When the straight-line method is used to compute depreciation, the depreciation expense per period is the depreciable cost (cost of the asset minus its expected salvage value) divided by the number of periods in the asset's useful life. The carrying value of an asset (book value) decreases each period, accumulated depreciation increases each period, and the book value will eventually equal the salvage value at the end of the asset's useful life.

Which of the Following Statements Is True When the Straight-Line