Annual depreciation costs are constant, when the ______________ method of depreciation calculation is used ?
Correct answer: B. Straight line
- A. Declining balance
- B. Straight line
- C. Sum of the years digit
- D. None of these
Explanation
The straight-line method divides the depreciable amount equally over the asset life, giving the same depreciation charge every year. Declining-balance and sum-of-the-years-digits methods deliberately vary the annual charge.
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