A depreciation method in which an equal amount of depreciation expense is assigned to each year of the asset's use is the:
A)units-of-production method.
B)straight-line method.
C)accelerated depreciation method.
D)estimated residual value method.

Question

Quizplus · Accepted Answer

The straight-line method assigns equal amounts of depreciation expense to each year of an asset's use. This method is simple to use and provides a consistent amount of depreciation each year. The units-of-production method bases depreciation expense on the actual usage of the asset, while accelerated depreciation methods assign a higher amount of depreciation expense to earlier years of an asset's use. The estimated residual value method is used to estimate the value of the asset at the end of its useful life, but does not determine the amount of depreciation expense for each year.

A Depreciation Method in Which an Equal Amount of Depreciation