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A. Sum of digits
B. Reducing line
C. Straight line
Agree with the answers…
Written Down Value method (B. Reducing line) is the most appropriate method of calculating depreciation.
The commonly used methods are Straight line and Reducing balance.
The famous method of depreciation is Straight Line (C) method over the period of asset life, it is more convenient to calculate and easy to understand for others.
However nature of asset usage and life is also considerable while choosing the method of depreciation. For example, if a machine life is10000 hours, and the hour usage is vary each month, we cannot use straight line method, instead we have to use sum of digits method.
Straight Line method
simple & easy to calculate
Straight Line Method. It is simplest and most effective.
written down method is the most relevant one, straight line is useful for cos whose asset will become useless and no value at all for instance furnace of a glass manufacturing company
The answer is: C- Straight line
Most of the companies normally use Straight line method
Straight Line method is very famous because it is easy to understand
reducing line is the most famous depreciation method
B. Reducing Balance Method or WDV method is practically applied in most of the organizations.
