The correct answer is A. Straight line method.
The straight-line method is a depreciation method that assumes that the annual
cost of depreciation is a fixed percentage of the book value at the beginning of the year. This means that the depreciation expense is the same each year for the life of the asset.The
straight-line method is the simplest and most common depreciation method. It is easy to understand and apply, and it provides a consistent depreciation expense each year.The straight-line method is not always the best depreciation method to use. For example, if an asset is expected to have a higher usage in the early years of its life, then a different depreciation method, such as the declining balance method, may be more appropriate.
The sinking fund method is a depreciation method that assumes that the annual cost of depreciation is equal to the amount that would be deposited into a sinking fund each year to accumulate enough money to replace the asset at the end of its useful life.
The sum-of-the-year-digits method is a depreciation method that assumes that the annual cost of depreciation is proportional to the number of years remaining in the asset’s useful life.
The declining balance method is a depreciation method that assumes that the annual cost of depreciation is a fixed percentage of the book value of the asset at the beginning of the year. The percentage is usually greater than 100%, which means that the depreciation expense is greater in the early years of the asset’s life and less in the later years.