in ______ method, the depreciation of properties assumed to be equal to the annual sinking fund plus the interest on the fund for that year.

Question

Quizplus · Accepted Answer

The sinking fund method of depreciation involves setting aside a certain amount of money each year into a sinking fund, where it earns interest. The depreciation expense for each year is considered to be equal to the annual contribution to the sinking fund plus the interest earned by the fund during that year. This method ensures that there will be enough money in the fund to replace the asset at the end of its useful life.

In ______ Method, the Depreciation of Properties Assumed to Be