In Which Amortization Method Is the First Year's Amortization Computed

question 113

Multiple Choice

In which amortization method is the first year's amortization computed by applying the amortization rate to the total cost of the asset (without reducing it for residual value) ?

• A) Sum-of-the-years'-digits
• B) Declining balance
• C) Straight-line
• D) Productive output

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