The Calculation of Depreciation Using the Diminishing-Balance Method

question 115

Multiple Choice

The calculation of depreciation using the diminishing-balance method

• A) ignores residual value in determining the amount to which a constant rate is applied.
• B) multiplies a constant percentage times the previous year's depreciation expense.
• C) yields an increasing depreciation expense each period.
• D) multiplies a diminishing percentage times a constant carrying amount.

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