Question

Under which of the following method depreciation charged does not declines?

• A. Straight line method (SLM).
• B. Annuity method.
• C. Depreciation fund method.
• D. All of the above.

Answer 1

The correct option is D All of the above.

Under all the three methods of depreciation, given in the question, depreciation is charged uniformly and consistently year on year. Unlike the Written down value method where the charge against the asset in form of depreciation which reduces with the passage of time.

Also, under Straight line method, annuity method and depreciation fund method, salvage value is also pre-determined as at the last year of the asset.