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The straight line method charges depreciation that is

  • A.proportional to the output produced
  • B.equal in every year
  • C.greatest in the first year
  • D.greatest in the final year

Answer: B

Correct answer: equal in every year

Straight line divides the depreciable base by the number of years, so the charge is the same each year and the book value falls in a straight line to the salvage value. It is the simplest method and the usual choice for reporting, where a smooth charge is preferred to an accelerated one.

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