If depreciation is assumed to occur at an even rate, which method of calculating depreciation is being used?

If depreciation is assumed to occur at an even rate, which method of calculating depreciation is being used?

• A. Economic age life method
• B. Straight-line method
• C. Declining balance method
• D. Sum-of-the-years' digits method

Answer: (A)

If depreciation is being calculated at an even rate, the most likely method being used is the straight-line method. This question is based on the assumption that the chosen method is evenly distributing the total depreciation over the useful life of the asset, rather than front-loading or back-loading the depreciation expenses. The other options mentioned (economic age life, declining balance, and sum-of-the-years' digits methods) are all variations that do not result in equal depreciation expenses each year. Therefore, they do not fit the criteria of an even rate of depreciation.

If depreciation is being calculated at an even rate, the most likely method being used is the straight-line method. This question is based on the assumption that the chosen method is evenly distributing the total depreciation over the useful life of the asset, rather than front-loading or back-loading the depreciation expenses. The other options mentioned (economic age life, declining balance, and sum-of-the-years' digits methods) are all variations that do not result in equal depreciation expenses each year. Therefore, they do not fit the criteria of an even rate of depreciation.