The straight-line depreciation method and the double-declining-balance depreciation method:
A)produce the same total depreciation over the asset's useful life.
B)produce the same amount of depreciation expense each year.
C)produce the same book value each year.
D)are the only acceptable methods of depreciation for financial reporting.

Question

Quizplus · Accepted Answer

Both straight-line and declining-balance methods are acceptable methods of depreciation.They will produce the same total depreciation over the asset's useful life,but the annual amount of depreciation expense and book value will differ from year-to-year.

The Straight-Line Depreciation Method and the Double-Declining-Balance Depreciation Method