Which of the following depreciation methods calculates annual depreciation expense based on an asset's cost minus its residual value?
A)deferred depreciation
B)straight-line
C)capital cost allowance
D)declining-balance

Question

Quizplus · Accepted Answer

The straight-line depreciation method calculates annual depreciation expense by dividing the difference between an asset's cost and residual value by the asset's useful life. This results in an equal amount of depreciation expense each year.

Which of the Following Depreciation Methods Calculates Annual Depreciation Expense