Question

Under which of following method depreciation is charged uniformly?
1. Straight line method (SLM).
2. Sum of year digit method.
3. Annuity method.
4. Depreciation fund method.
The correct answer is -

• A. 3 and 1.
• B. 4 and 1.
• C. 3, 2 and 1.
• D. Only 1

Answer 1

The correct option is D Only 1

Under this method, an equal amount is charged for depreciation of every fixed asset in each of the accounting periods. This uniform amount is charged until the asset gets reduced to nil or its salvage value at the end of its estimated useful life.