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The Assumption Underlying the Reducing Balance Method of Depreciation Is

Question 2

Multiple Choice

The assumption underlying the reducing balance method of depreciation is:


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

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