Asked by Joshua Waterman on Jun 19, 2024

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The straight-line depreciation method and the double-declining-balance depreciation method:

A) Produce the same total depreciation over an asset's useful life.
B) Produce the same depreciation expense each year.
C) Produce the same book value each year.
D) Are acceptable for tax purposes only.
E) Are the only acceptable methods of depreciation for financial reporting.

Double-declining-balance

An accelerated method of depreciation which double the rate of normal depreciation, reducing the value of assets more quickly.

Depreciation Expense

The yearly allocation of the cost of an asset over its useful life, reflecting the asset's usage and wear and tear over time.

Book Value

The net value of a company's assets minus its liabilities and intangible assets, often used to estimate a company's worth in liquidation scenarios.

  • Absorb the essentials and utility of different depreciation methodologies.
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AH
Angela Hunter BrockJun 22, 2024
Final Answer :
A
Explanation :
The straight-line depreciation method and the double-declining-balance depreciation method do not produce the same depreciation expense each year, but they both result in the same total depreciation expense over an asset's useful life. Therefore, option A is the correct choice. The other options are incorrect as both methods are acceptable for financial reporting and tax purposes, they do not produce the same depreciation expense each year or the same book value each year.