Which depreciation method is most similar to the method that is used to calculate amortization of intangible assets?
A)straight-line
B)double-declining balance
C)activity
D)capitalization

Question

Quizplus · Accepted Answer

The straight-line method is most similar to the method used to calculate amortization of intangible assets because it allocates the cost of the asset evenly over its useful life. In contrast, the double-declining balance and activity methods allocate more depreciation expense in the early years of an asset's life, which does not match the way in which intangible assets typically lose their value. The capitalization method is not a depreciation method, but rather a method of recording costs as an asset on the balance sheet rather than as an expense on the income statement.

Which Depreciation Method Is Most Similar to the Method That