Question

According to the straight-line depreciation method, an equal amount of depreciation expense is assigned to each year of the asset useful life

a) True
b) False

Answer 1

According to the straight-line depreciation method, an equal amount of depreciation expense is assigned to each year of the asset useful life. - False

Step-by-step explanation:

The statement is false. According to the straight-line depreciation method, the same amount of depreciation expense is assigned to each year of the asset's useful life, not an equal amount.

For example, let's say a company purchases a machine for $10,000 with a useful life of 5 years. Using the straight-line depreciation method, the annual depreciation expense would be $2,000 ($10,000 divided by 5). So, each year, $2,000 of depreciation expense will be assigned to the asset until the end of its useful life.