Use of Straight-Line Depreciation in Comparison to the Diminishing-Balance Method

question 43

Multiple Choice

Use of straight-line depreciation in comparison to the diminishing-balance method results in
1) a greater amount of depreciation in the earlier years of an asset's useful life.
2) a greater amount of depreciation in the later years of an asset's useful life.
3) an equal amount of depreciation over an asset's total useful life.

• A) 1.
• B) 2.
• C) 3.
• D) both 2 and 3.

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