A plant asset has a cost of $32,000 and a salvage value of $8,000. The asset has a three-year life. If depreciation in the third year amounted to $4,000, which depreciation method was used?

Question

Quizplus · Accepted Answer

The sum-of-the-years'-digits method results in decreasing depreciation amounts each year. Given the depreciation in the third year is $4,000, it aligns with this method's pattern.

A Plant Asset Has a Cost of $32,000 and a Salvage