Asked by
Miracle Gonzales
on Dec 06, 2024Verified
Which depreciation method cannot be used when the residual value is zero?
A) sum-of-the-years'-digits method
B) retirement method
C) fixed-percentage-of-declining-balance method
D) 150%-declining-balance method
Fixed-Percentage Method
The Fixed-Percentage Method is a depreciation technique where a constant percentage of the asset's book value is depreciated each year, resulting in decreasing annual depreciation expenses.
Residual Value
The estimated amount that an asset is expected to realize upon its disposal at the end of its useful life.
- Identify the impact of residual value and useful life on the depreciation process.
Verified Answer
BM
Learning Objectives
- Identify the impact of residual value and useful life on the depreciation process.