Question

ADS depreciation is always computed using the straight-line method.
a-True
b-False

Answer 1

ADS depreciation is always computed using the straight-line method.

Step-by-step explanation:

The statement is True. ADS (Alternative Depreciation System) depreciation is always computed using the straight-line method.

The straight-line method is a common and straightforward way of depreciating an asset over its useful life. It evenly allocates the cost of the asset over the number of years in its useful life.

For example, if a company purchased a machine for $10,000 with a useful life of 5 years, using the straight-line method, the annual depreciation expense would be $2,000 ($10,000 divided by 5 years).