Tastee Bakery just bought a new delivery truck,which the bakery plans to use for four or five years before replacing it.If the company calculates straight-line depreciation using an estimated useful life of four years,this accounting choice would be considered ________.

Question

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Using a four-year estimated useful life for straight-line depreciation is considered conservative because it assumes that the value of the asset will decline steadily over a shorter period of time, resulting in higher depreciation expenses in the earlier years of the asset's life. This approach is more cautious than using a longer estimated useful life or a more accelerated method of depreciation.

Tastee Bakery Just Bought a New Delivery Truck,which the Bakery