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The Assumption Underlying the Reducing Balance Method of Depreciation Is

Question 1

Multiple Choice

The assumption underlying the reducing balance method of depreciation is:


A) the asset makes a lower contribution to income in the earlier years of its life and a higher contribution in the later years.
B) the asset makes the same contribution to income in each year of its life.
C) the contribution the asset makes to income depends on its usage.
D) the asset makes a higher contribution to income in the earlier years of its life.

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