Which of the following statements is true when the straight-line method is used to compute depreciation?
A)The carrying value of an asset is a constant amount during the asset's useful life.
B)Accumulated depreciation is a constant amount during the asset's estimated useful life.
C)Depreciation expense per period is the depreciable cost divided by the number of periods in the asset's useful life.
D)None of the answers are acceptable.

Question

Quizplus · Accepted Answer

The straight-line method evenly distributes the depreciable cost over the useful life of an asset, resulting in a constant amount of depreciation expense each period. Depreciation expense per period is calculated by dividing the depreciable cost (cost minus salvage value) by the number of periods in the asset's useful life. The carrying value of an asset decreases over its useful life as accumulated depreciation increases, and accumulated depreciation is not a constant amount but rather increases each period by the amount of depreciation expense recognized.

Which of the Following Statements Is True When the Straight-Line