Which of the following methods ignores residual value initially but eventually considers it in the calculation of depreciation?
A)Straight-line
B)Double-declining-balance
C)Group
D)Production

Question

Quizplus · Accepted Answer

The double-declining-balance method of depreciation does not initially consider the residual value in calculating the annual depreciation expense. However, it effectively considers the residual value towards the end of the asset's useful life because depreciation expense is reduced in the final years to ensure the asset's book value does not fall below its residual value.

Which of the Following Methods Ignores Residual Value Initially but Eventually