Under this method, a particular asset is expected to generate equal utility (economic benefits) during its useful life. Which method is this?

Straight line method

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Reducing balance method

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Number of units produced method

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Machine hours method

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Solution

The correct option is A
Straight line method

Under straight line method, assets are expected to provide equal utility during its useful life.

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The annual depreciation charged under _______ method remains fixed during the life of asset, while it diminishes every year in ______ method

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