A student is defending a certain depreciation method.She uses the argument that repairs and maintenance costs will probably increase as the asset gets older.She also argues that the asset will produce less as it gets older.What depreciation method is she probably defending?
A)straight-line method
B)sum-of-the-years'-digits method
C)sinking-fund method
D)activity method

Question

Quizplus · Accepted Answer

The student is likely defending the sum-of-the-years'-digits method, as this method takes into account the fact that an asset's productivity and maintenance costs will likely decrease and increase, respectively, as the asset gets older. This method results in higher depreciation expenses earlier in the asset's life, reflecting the higher productivity and lower maintenance costs during that time.

A Student Is Defending a Certain Depreciation Method