Multiple choice technology

Which function calculates depreciation at the same amount each year over an asset's useful life?

  1. DB (fixed-declining balance)

  2. SLN (straight-line depreciation)

  3. DDB (double-declining)

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

SLN (Straight-Line depreciation) allocates an asset's cost evenly over its useful life, deducting the same amount each year. It's calculated as (cost - salvage value) / useful life. This differs from declining balance methods (DB, DDB) which deduct larger amounts in early years and smaller amounts later, accelerating depreciation for tax purposes.

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