A plant asset has a cost of $24,000 and a residual value of $6,000.The asset has a three-year life.If depreciation in the third year amounted to $3,000, which depreciation method was used?

Question

Quizplus · Accepted Answer

The sum-of-the-years'-digits method results in decreasing depreciation amounts each year. Given the cost, residual value, and third-year depreciation, this method fits the pattern.

A Plant Asset Has a Cost of $24,000 and a Residual