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The straight-line depreciation method and double-declining balance depreciation method A. produce the same total depreciation over an asset's useful life B. produce the same depreciation expense each year C. produce the same book value each other D. are the only acceptable methods of depreciation for financial reporting E. Are acceptable for tax purpose only.

Respuesta :

Answer:

A. produce the same total depreciation over an asset's useful life

Explanation:

Depreciation refers to a fall in the value of an asset due to normal wear and tear or efflux of time.

Under straight line method of depreciation, the total depreciation chargeable on an asset is spread over it's useful life. It is given by the formula:

Depreciation = [tex]\frac{Original\ Cost\ - Salvage\ Value}{Years\ of\ useful\ life}[/tex]

Under double declining balance method, the depreciation in the first year is the greatest and charged the lowest in the last year. Under this method, the asset is depreciated at twice i.e double the rate of depreciation calculated in straight line method.

But the total depreciation charged over an asset's life is the same under both the methods.

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