Which of the following statements about straight-line depreciation is correct A Straight-line

Question

Which of the following statements about straight-line depreciation is correct?

A) Straight-line depreciation is the most common method of depreciation used in the U.S. for financial reporting, but is not commonly used for taxes.

B) When the straight-line method is used to compute depreciation, an asset's carrying value remains constant over the life of the asset.

C) Straight-line depreciation is an approved method to allocate the cost of an asset to expense and it serves as a measure of the physical decline in the asset.

D) The straight line method of depreciation results in a straight-line increase of depreciation expense over the life of an asset.

Answer

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