Q379
Under diminishing balance method, depreciation
A.
Is constant every year
B.
Increases every year
C.
Decreases every year
AnswerD.
None of the above
Answer: Option C
Solution
Answer: Option C
Solution:
Under diminishing balance method, depreciation decreases every year. Since the book value reduces every year, hence the amount of depreciation also reduces every year. Under this method, the value of the asset never reduces to zero.