Choose the statement about depreciation that is correct.
A) Yearly depreciation will always be higher using the reducing-balance method.
B) At the end of the asset's useful life, total depreciation charged will be the same whichever depreciation method is used.
C) Yearly depreciation will always be higher using the straight-line method.
D) Yearly depreciation will always be lower using the units of production method.

Question

Quizplus · Accepted Answer

The total depreciation charged at the end of an asset's useful life will be the same regardless of which depreciation method is used. This is because the total amount of depreciation charged over the asset's life should be the same, regardless of whether it is calculated using straight-line, reducing-balance, or units of production method.

Choose the Statement About Depreciation That Is Correct