Given the Following List of Methods of Depreciation, Select the Method

question 127

Multiple Choice

Given the following list of methods of depreciation, select the method that is best for the situation or purpose given.Some answers may be used more than once, while others may not be used at all.
-This method minimizes taxable income (early in the asset's life) .

• A)Straight-line
• B)Units-of-productionc.
• C)Double-declining-balance
• D)MACRS

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Definitions:

Liability

The legal responsibility to settle debts or obligations, which may arise from contracts, torts, or statutory duties.

Management Duties

The responsibilities and tasks assigned to the management of an organization, including decision-making, planning, staffing, directing, and controlling.

Limited Partners

Individuals in a partnership who invest money but are not involved in day-to-day management, and whose liability is limited to the amount of their investment.

General Partnership

A business structure where two or more individuals agree to share in all assets, profits, and financial and legal liabilities of a venture.