Straight-line depreciation does not:
A)Use residual to calculate yearly depreciation
B)Have a book value
C)Accelerate depreciation
D)Let the cost remain the same
E)None of these

Question

Quizplus · Accepted Answer

Straight-line depreciation is a method of allocating the cost of an asset over its useful life. It does not accelerate depreciation like some other methods such as double-declining balance depreciation. Therefore, option C is the correct answer. Option A is incorrect because residual value is subtracted from the cost to determine depreciable base, which is then used to calculate yearly depreciation. Option B is incorrect because book value is determined by subtracting accumulated depreciation from the cost of the asset. Option D is incorrect because the cost of the asset is allocated over its useful life and decreases accordingly. Option E is incorrect because option C is the correct answer.

Straight-Line Depreciation Does Not