Asked by Matthew Eskender on Apr 29, 2024
Verified
Which depreciation method does NOT use the current book value in calculating depreciation expense?
A) Straight-line
B) Double declining-balance
C) Units-of-production
D) Both A and C
Units-of-production
A method of depreciation that assigns an asset's cost based on its usage, activities, or output, instead of the passage of time.
Depreciation Expense
Depreciation Expense denotes the allocation of an asset's cost over its useful life, reflecting the asset's consumption or decline in value.
Straight-line
A method of depreciation that allocates an equal expense amount to each period over the useful life of an asset.
- Quantify the depreciation expense through deliberate employment of numerous methods such as straight-line, double declining-balance, and units-of-production.
Verified Answer
BS
Brock ShivelyMay 01, 2024
Final Answer :
D
Explanation :
The straight-line and units-of-production methods do not use the current book value in calculating depreciation expense. The straight-line method calculates depreciation based on the initial cost minus salvage value over the useful life, while the units-of-production method bases depreciation on the number of units produced or hours used during the period.
Learning Objectives
- Quantify the depreciation expense through deliberate employment of numerous methods such as straight-line, double declining-balance, and units-of-production.