Final answer:
All depreciation methods result in the same total depreciation over the life of an asset, differing only in the timing and pattern of the expense allocation. The total depreciation will always be the cost of the asset minus its salvage value.
Step-by-step explanation:
Over the entire service life of an asset, which depreciation method records the highest total depreciation? The correct answer is: 2) all the methods result in the same total depreciation.
Depreciation methods, such as the double-declining-balance method, straight-line method, and activity-based method, differ in the pattern in which the cost of an asset is allocated over its useful life. However, regardless of the method used, the total depreciation recorded over the life of an asset is the same. The total sum of depreciation expenses will equate to the cost of the asset minus its residual value at the end of its useful life.
For example, if you have an asset worth $1,000 with a residual value of $100, and a useful life of 10 years, all methods of depreciation would eventually depreciate the asset by $900 total over 10 years, just at different rates per year.