The Straight-Line Method and the Double-Declining-Balance Method of Depreciation

question 136

Multiple Choice

The straight-line method and the double-declining-balance method of depreciation

• A)Produce the same total depreciation over an asset's useful life
• B)Allocate an asset's cost in a systematic and rational manner
• C)Do not produce the same book value each year
• D)Are both acceptable for GAAP
• E)All of these

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Definitions:

Exemptions

Provisions that allow individuals or entities to be relieved from an obligation, such as taxes, previously imposed on them.

Corporate Income Taxes

Taxes imposed on the net income (profits) of corporations by the government.

Property Taxes

Government-imposed charges on property, calculated from the real estate's worth, intended to finance community facilities and public infrastructure.

Payroll Taxes

Payroll Taxes are taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.