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Straight-line depreciation is constant meaning you depreciate the same amount each period through out the life...
Straight-line depreciation is constant meaning you depreciate the same amount each period through out the life of the asset. Can anyone else expand here
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Expert Solution
Answer:
Straight Line Depreciation is the basic method of Calculating Depreciation in which Depreciation is calculated by dividing Depreciable Asset with the Useful Life of the asset.
Straight Line Depreciation = Depreciable Cost / Useful Life of
Asset
Depreciable Cost = Cost - Salvage Value
In Straight Line Depreciation, Depreciation for each year remains the same / Constant throughout Useful life of the Asset and doesn't change with Units produced or decrease each year. While, the Depreciation amount changes in each year, if calculated using other method such as:
- Double Declining Method
- Units of Production Method
- Sum of Years' Digit method
In Units of Production Method, the Depreciation for each year changes according to the Units produced during the year. Whereas, the Depreciation for each year decreases in Double Declining method, as Depreciation is calcuted for each year is calculated on the Book Value of asset at the Beginning of the year etc.
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Question 1 options:
True
False
Question 2 (1 point)
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