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Homework answers / question archive / A depreciation method in which a plant asset’s depreciation expense for a period is determined by applying a constant depreciation rate each period to the asset’s beginning book value is called: Book value depreciation Declining-balance depreciation Straight-line depreciation Units-of-production depreciation Modified accelerated cost recovery system (MACRS) depreciation
A depreciation method in which a plant asset’s depreciation expense for a period is determined by applying a constant depreciation rate each period to the asset’s beginning book value is called:
Answer:
b . Declining-balance depreciation
Step-by-Step explanation
Depreciation rate per year is calculated by using this formula:
Depreciation per year/ Purchase cost x 100
The resultant rate is used every year to charge depreciation over assets as this rate is charged over the initial cost of the asset.
