Which of the methods below is a way to allocate depreciation?
A) Each year is allocated the amount of cost as determined by the actual estimated usage for that year.
B) Use the government-mandated accelerated depreciation system, which depreciates the capital asset at the minimum accelerated amount allowed each year.
C) Each year is allocated the same amount of cost as determined by the average expected operating cash inflow divided by the number of years of useful life of the machines.
D) Use the government-mandated accelerated depreciation system, which depreciates the capital asset at the maximum accelerated amount allowed each year.
Correct Answer:
Verified
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