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<p>a. Declining Balance Method.</p> <p>b. Sum of the Years' Digit Method.</p> <p>c. Straight Line Method</p> <p>d. Does not matter which method is used.</p>
Following any type of Depreciation Method, the Difference between the purchase purchase and depreciated price need be considered as "Notional Loss" for accounting purpose and "Not real loss". The money value in any case will not be passed on to any third person other than as a mal adjustment in the books.
Based on this: Answer: d. Does not matter which method is used.
b. Sum of the Years' Digit Method.
the answer is B Sum Of the Years' Digit Method. This depreciation method is designed to recognize the bulk of all depreciation within the first few years of an asset’s depreciable period, but does not do so quite as rapidly as the double-declining balance method
As value is incerase ,in same proportion the loss will be incrase .
B is correct one
