Depreciation methods for introductory financial accounting


Question: A fixed asset has a cost of $12,000 and a salvage value of $3,000. The asset has a three-year life. If depreciation in the third year amounted to $1,500, which depreciation method was used?

o Straight-line.

o Double-declining-balance.

o Units of production.

o Sum-of-the-years digits.

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Accounting Basics: Depreciation methods for introductory financial accounting
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