The _____ method divides the acquisition cost of an asset (including the cost to dismantle and retire) less its estimated salvage value by the estimated service life to calculate depreciation or amortization.
A)straight-line
B)sum-of-the-years'-digits
C)double declining balance method
D)accelerated depreciation
E)decelerated depreciation

Question

Quizplus · Accepted Answer

The straight-line method is the one described in the prompt, and is a common method for calculating depreciation or amortization. The other methods listed (B, C, D, E) are all alternative methods used for calculating depreciation with different formulas and assumptions.

The _____ Method Divides the Acquisition Cost of an Asset