Which of the Methods Below Is a Way to Allocate

question 36

Multiple Choice

Which of the methods below is a way to allocate depreciation?

• A) Each year is allocated the amount of cost as determined by the actual estimated usage for that year.
• B) Use the government-mandated accelerated depreciation system, which depreciates the capital asset at the minimum accelerated amount allowed each year.
• C) Each year is allocated the same amount of cost as determined by the average expected operating cash inflow divided by the number of years of useful life of the machines.
• D) Use the government-mandated accelerated depreciation system, which depreciates the capital asset at the maximum accelerated amount allowed each year.

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