The depreciation method that charges the same amount of expense to each period of the asset's useful life is called:
A) Units-of-production depreciation.
B) Modified accelerated cost recovery system (MACRS) depreciation.
C) Accelerated depreciation.
D) Declining-balance depreciation.
E) Straight-line depreciation.

Question

Quizplus · Accepted Answer

Straight-line depreciation is the depreciation method that charges the same amount of expense to each period of the asset's useful life. Choice A (Units-of-production depreciation) charges more depreciation in periods with high production (use), Choice B (MACRS) is a specific method for tax purposes, Choice C (Accelerated depreciation) charges more depreciation in the early years of an asset's life, and Choice D (Declining-balance depreciation) charges more depreciation in the early years of an asset's life and reduces the amount of depreciation in subsequent periods.

The Depreciation Method That Charges the Same Amount of Expense