The correct answer is: A. a-3. b-4, c-1, d-2
The Annuity Method is a depreciation method that calculates depreciation expense as a constant amount each year. This method is often used for assets that have a long useful life, such as patterns.
The Revaluation Method is a depreciation method that calculates depreciation expense as a percentage of the asset’s book value. This method is often used for assets that have a short useful life, such as motor lorries.
The Fixed Instalment Method is a depreciation method that calculates depreciation expense as a constant percentage of the asset’s original cost. This method is often used for assets that have a medium useful life, such as copyrights.
The Diminishing Balance Method is a depreciation method that calculates depreciation expense as a constant percentage of the asset’s declining book value. This method is often used for assets that have a short useful life, such as live stock.
Here is a brief explanation of each option:
- Option A: This option is correct because it matches the assets with the correct depreciation methods.
- Option B: This option is incorrect because it matches the assets with the wrong depreciation methods. For example, it matches the asset “patterns” with the depreciation method “Revaluation Method”, which is not the correct depreciation method for patterns.
- Option C: This option is incorrect because it matches the assets with the wrong depreciation methods. For example, it matches the asset “motor lorries” with the depreciation method “Fixed Instalment Method”, which is not the correct depreciation method for motor lorries.
- Option D: This option is incorrect because it matches the assets with the wrong depreciation methods. For example, it matches the asset “live stock” with the depreciation method “Annuity Method”, which is not the correct depreciation method for live stock.