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

Finance Mar 26, 2021

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:

1. Book value depreciation.
2. Declining-balance depreciation
3. Straight-line depreciation
4. Units-of-production depreciation

E. Modifies accelerated cost recovery system (MACRS) depreciation

Expert Solution

Answer:

C .

Step-by-Step explanation

Depreciation is a decline in the value of the non-current assets and it is an expense for the entity which is charged to the fixed assets. There are various methods of charging depreciation on the assets and the straight-line method is one of them. In this method, depreciation is computed at a fixed rate on the original cost of the asset.

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