Over the life of an asset, the total of the amounts of the calculated annual net income will be about the same, regardless of the method of depreciation.

Question

Quizplus · Accepted Answer

This is because the total amount of depreciation expense is based on the cost of the asset and the estimated useful life, which remain the same regardless of the depreciation method used. Therefore, the total of the calculated annual net income should be comparable over the life of the asset.

Over the Life of an Asset, the Total of the Amounts