Sharon purchased a new photocopier for her business. According to her accountant, she can deduct 1/7ᵗʰ of its original cost each year for the next seven years from her taxable income. This depreciation method is commonly referred to as:

Question

Quizplus · Accepted Answer

The depreciation method described is the straight line method, as the asset is depreciated evenly over seven years by deducting 1/7ᵗʰ of its original cost each year. The declining balance method, sum of the years' digits method, and modified accelerated cost recovery system are all different methods of depreciation that do not align with the given scenario.

Sharon Purchased a New Photocopier for Her Business