The depreciation method that does not use salvage value in calculating the first year's depreciation expense is:
A) straight-line method
B) units-of-activity method
C) double-declining-balance method
D) straight-line method and units-of-activity method

Question

Quizplus · Accepted Answer

The double-declining-balance method does not consider salvage value in calculating the first year's depreciation expense, as it uses a fixed rate applied to the book value each year, regardless of any estimated salvage value. The other options (A) straight-line method and (B) units-of-activity method do consider salvage value in the calculation of the first year's depreciation expense.

The Depreciation Method That Does Not Use Salvage Value in Calculating