Which Depreciation Method Deducts Residual Value When Computing Depreciation Expense

question 72

Multiple Choice

Which depreciation method deducts residual value when computing depreciation expense?

• A) Units-of-production
• B) Straight-line
• C) Double declining-balance
• D) Both A and B are correct.

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Definitions:

Quantity of Output

The total amount of goods or services produced by a company, sector, or economy within a specific period.

Price Level

The overall average price of all goods and services currently made in the economy.

Classical Theory

A school of thought in economics that emphasizes free markets, competition, and the minimal involvement of government in the economy.

Supply of Savings

The total amount of savings that individuals and institutions are willing to provide at different interest rate levels.