The formula for computing annual straight-line depreciation is:
A)Depreciable cost divided by useful life in units.
B)Cost plus salvage value divided by the useful life in years
C)Cost less salvage value divided by the useful life in years.
D)Cost divided by useful life in years.
E)Cost divided by useful life in units.

Question

Quizplus · Accepted Answer

The straight-line depreciation method calculates depreciation by taking the cost of an asset, subtracting its salvage value, and then dividing by the useful life of the asset in years.

The Formula for Computing Annual Straight-Line Depreciation Is