The depreciation method that applies a constant percentage to the carrying amount at the beginning of the period in calculating depreciation is called
A)straight-line.
B)units-of-production.
C)diminishing-balance.
D)diminishing units-of-production.

Question

Quizplus · Accepted Answer

The method described is the declining balance method, also known as the diminishing balance method. The percentage used remains constant over the useful life of the asset, but the actual amount of depreciation decreases each year as the asset's carrying value gets smaller.

The Depreciation Method That Applies a Constant Percentage to the Carrying