The depreciation method in which a plant asset's depreciation expense for a period is determined by applying a constant depreciation rate to the asset's beginning-of-period book value is called:
A)Book value depreciation.
B)Declining-balance depreciation.
C)Straight-line depreciation.
D)Units-of-production depreciation.
E)Modified accelerated cost recovery system (MACRS)depreciation.

Question

Quizplus · Accepted Answer

The declining-balance depreciation method applies a constant rate to the asset's beginning-of-period book value, resulting in decreasing depreciation expenses over time.

The Depreciation Method in Which a Plant Asset's Depreciation Expense