Which method of depreciation considers residual value in computing the normal periodic depreciation?
A) Straight-line
B) MACRS
C) Double-declining-balance
D) Accelerated

Question

Quizplus · Accepted Answer

The straight-line method of depreciation considers residual value in computing the normal periodic depreciation. This method reduces the asset's cost evenly over its useful life, and residual value is subtracted from the cost to determine the depreciable base. Other methods, such as MACRS and double-declining-balance, do not consider residual value in computing depreciation. Accelerated depreciation methods may consider residual value, but it is not a defining characteristic of those methods.

Which Method of Depreciation Considers Residual Value in Computing the Normal