All of the following amortization methods take into account residual value except:

Name: All of the following amortization methods take into account residual value except:
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

The declining balance method of amortization does not take into account the residual value in its calculation. It applies a constant rate of depreciation to the depreciable base (cost minus salvage value) each year, but the calculation of the depreciation expense itself does not directly factor in the residual value.

All of the Following Amortization Methods Take into Account Residual