The method of depreciation that results in the same amount of depreciation expense each year is the

Question

Quizplus · Accepted Answer

The straight-line method results in the same amount of depreciation expense each year. The other three methods (units-of-output, sum-of-the-years'-digits, and declining-balance) all result in varying amounts of depreciation expense each year. The units-of-output method bases depreciation on actual usage or production, the sum-of-the-years'-digits method favors higher depreciation expense in earlier years, and the declining-balance method applies a constant depreciation rate to the book value of the asset each year, resulting in a decreasing amount of depreciation expense over time. Therefore, the straight-line method is the best choice for this question.

The Method of Depreciation That Results in the Same Amount