Cost minus residual value divided by useful life in years is the:
A)straight-line method.
B)units-of-production method.
C)double-declining balance method.
D)modified accelerated cost recovery method.

Question

Quizplus · Accepted Answer

The formula given is used to calculate depreciation under the straight-line method. Therefore, the answer is A. The units-of-production method and double-declining balance method use different formulas, while the modified accelerated cost recovery method is a tax depreciation method that calculates depreciation for tax purposes.

Cost Minus Residual Value Divided by Useful Life in Years