For a machine that needs no maintenance or very little maintenance that also in the end year of asset, the depreciation method that suits best is ________.

Straight line method

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Diminishing balance method

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Annuity method

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None of the above

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Solution

The correct option is B Straight line method
Straight line method is a method of charging depreciation for a consistent/ uniform amount through out the useful life of a fixed asset. Such method is appropriate when the economic benefit to be derived from such asset is even and it needs very little maintenance towards the end year.

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