Question

If a depreciable asset is expected to be used evenly over its useful life, then management should choose which method?

a. Straight-line
b. Double-declining balance
c. Units of production
d. Sum-of-the-years-digits

Answer 1

For a depreciable asset with even usage over its lifespan, management should opt for straight-line depreciation. It spreads the cost evenly over the asset's useful life, offering a consistent yearly expense.

Step-by-step explanation:

If a depreciable asset is expected to be used evenly over its useful life, then management should choose the straight-line depreciation method. This method allocates the cost of an asset evenly across its useful life. It is the simplest and most commonly used depreciation method, which reflects a consistent expense pattern over the years.