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Depreciation

Forums › FIA Forums › FA2 Maintaining Financial Records Forums › Depreciation

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Ken Garrett.
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  • May 18, 2021 at 10:20 pm #620983
    maximus07
    • Topics: 377
    • Replies: 383
    • ☆☆☆☆

    The reducing balance method of depreciating non-current assets is more appropriate than the straight-line method when:

    (A) there is no expected residual value for the asset
    (B) the expected life of the asset is not capable of being estimated
    (C) the asset is expected to be replaced in a short period of time
    (D)the asset decreases in value less in later years than in the early years of use

    I do not have answer. I think D. What is your opinion sir?

    May 20, 2021 at 8:23 am #621178
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 9997
    • ☆☆☆☆☆

    I would think D too.

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