Which of the following would most likely not be depreciated or amortized using the straight-line method?
A) Copyrights.
B) Franchise.
C) Timber reserves.
D) Trademark.

Question

Quizplus · Accepted Answer

Timber reserves are generally not depreciated or amortized using the straight-line method because their value is based on biological growth, rather than wear and tear or useful life expectancy. Instead, depletion is a more appropriate method of accounting for the reduction in the value of timber reserves as they are harvested. Copyrights, franchises, and trademarks are typically intangible assets that are subject to amortization, and straight-line is one of the acceptable methods of amortization for such assets.

Which of the Following Would Most Likely Not Be Depreciated