After the early years of an asset's life,accelerated amortization methods:
A)cause an asset to be carried at a higher book value than the straight-line method.
B)cause an asset to be carried at a lower book value than the straight-line method.
C)cause an asset to be carried at the same book value as the straight-line method.
D)cannot be used if the resulting book value will be significantly different from that which would result from using the straight-line method.

Question

Quizplus · Accepted Answer

Accelerated amortization methods result in higher depreciation or amortization expenses in the early years of an asset's life and lower expenses in the later years. As a result, the book value of the asset is reduced faster in the early years, causing it to be carried at a lower book value than the straight-line method.

After the Early Years of an Asset's Life,accelerated Amortization Methods