The depreciation amount in straight line method remains _____________________ for every year.

fixed

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variable

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changing

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none

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Solution

The correct option is A fixed
Under Straight line method , a fixed and equal amount is charged as depreciation every year during the life time of asset. The depreciation under this method is a fixed amount every year. This amount is such that the book value of the asset may become zero at the end of its useful life.

Depreciation is calculated by the below formula:

Depreciation= Cost of Asset-Estimated scrap value
Estimated useful life of asset

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