Question

Which statement is true concerning the straight-line method of depreciation? Select one: A. Depreciation does not...

Which statement is true concerning the straight-line method of depreciation?

Select one:

A. Depreciation does not take salvage value into consideration

B. Depreciation is recognized evenly over the estimated useful life of the asset

C. Purchase cost is expensed in the year of acquisition

D. Depreciation is equal to the proceeds received on sale less the amount paid to acquire the asset

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Answer #1
Answer:   
Option (B ) is correct i.e.,
Depreciation is recognized evenly over the estimated useful life of the asset
Reason :
Depreaciation under Straight Line method is calculated as
                                         = (Cost of Asset (-) Salvage Value) / Usefull Life of the Asset.
*Depreciation is equally charged over the life of the Asset and is same is every Year.
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