The relative-fair-value method is the most conservative method of amortizing buildings and equipment.

Question

Quizplus · Accepted Answer

The relative-fair-value method is used for allocating the total cost among various assets in a purchase rather than for amortizing buildings and equipment. Amortization typically involves methods like straight-line or declining balance for spreading out the cost of an intangible asset over its useful life.

The Relative-Fair-Value Method Is the Most Conservative Method of Amortizing