Which of the following amortization methods ignore residual value in the calculation of the annual depreciation expense?
A)double-declining-balance and capital cost allowance
B)straight-line and double-declining-balance
C)straight-line and capital cost allowance
D)present value and straight-line

Question

Quizplus · Accepted Answer

Both the double-declining-balance method and capital cost allowance do not consider the residual value when calculating annual depreciation. The double-declining-balance method uses a fixed percentage of the book value, and capital cost allowance is a tax-based method that also does not account for residual value.

Which of the Following Amortization Methods Ignore Residual Value in the Calculation