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Hello students, here is a question, which depreciation method is the best method for the company to use and why? so, this is our question, let us discuss the answer for this.
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The first is straight line depreciation method.
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Straight line depreciation method.
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So, this method is the simplest and the most commonly used method.
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It spreads the cost of an asset evenly over its useful life.
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So, this method is best suited for an asset that have a predictable and consistent decline in the value over time.
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And the second is accelerated depreciation method.
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So this method allow for a larger deduction in an early year of an asset life and the smaller deduction in the later years.
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So, this method is best suited for an asset that have a higher rate of declining value in the early years of their life...