Final answer:
In the straight-line depreciation method, book value is not a factor in the calculation of depreciation; instead, it's the asset cost, salvage value, and useful life that influence the depreciation expense.
Step-by-step explanation:
When using the straight-line depreciation method, the factor that does not affect the computation of depreciation is C. Book value. This method of depreciation involves allocating the cost of a tangible asset over its useful life. The calculation requires three key pieces of information: the initial cost of the asset, its salvage value at the end of its useful life, and the estimated useful life of the asset. The book value is the asset's initial cost minus accumulated depreciation and is not used in the depreciation calculation itself; it’s the result of applying depreciation, not a factor in calculating it.
The straight-line method is a commonly used depreciation technique in accounting, and it can impact financial statements and tax returns. Understanding what factors influence the depreciation calculation is crucial for accurate financial reporting and planning.
When using the straight-line depreciation method, the book value is not a factor affecting the computation of depreciation. The straight-line depreciation method calculates depreciation based on the cost, useful life, and salvage value of an asset. The book value, which is the cost of the asset minus its accumulated depreciation, is not used in the calculation of depreciation.