Question

The depreciation method where salvage value is ignored until the end of the life of the asset is: straight-line. units-of-output. First-In, First-Out. double-declining-balance.

Answer 1

Usually all depreciation methods consider salvage value for calculation of depreciation be it straight line or units output method. It is only the double declining method that calculates depreciation on the carrying value at beginning of the year and does not subtract salvage value from the same. This carrying value for first year depreciation is the cost of asset and not cost less depreciation.

Hence, the depreciation method where salvage value is ignored until the end of the life of the asset is double-declining-balance.