Asked by ashaunte wellington on Jun 15, 2024
Verified
The calculation for annual depreciation using the straight-line depreciation method is
A) Initial cost / Estimated useful life
B) Depreciable cost / Estimated useful life
C) Depreciable cost × Estimated useful life
D) Initial cost × Estimated useful life
Straight-Line Depreciation
A method of allocating the cost of a tangible asset over its useful life in an equal annual amount.
Depreciable Cost
The cost of a fixed asset minus its salvage value, which is the total amount that can be depreciated over its useful life.
Initial Cost
The amount of money spent to acquire or start up an asset or investment, excluding any subsequent costs for maintenance or operation.
- Recognize and compute various depreciation techniques for physical assets.
Verified Answer
Learning Objectives
- Recognize and compute various depreciation techniques for physical assets.
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